Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-38676 | ||
Entity Registrant Name | Bank First Corp | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Tax Identification Number | 39-1435359 | ||
Entity Address, Address Line One | 402 North 8th Street | ||
Entity Address, City or Town | Manitowoc | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 54220 | ||
City Area Code | 920 | ||
Local Phone Number | 652-3100 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | BFC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 815 | ||
Entity Common Stock, Shares Outstanding | 10,141,926 | ||
Entity Central Index Key | 0001746109 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Firm ID | 686 | ||
Auditor Name | FORVIS, LLP | ||
Auditor Location | Atlanta, GA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 69,973,000 | $ 51,524,000 |
Interest-bearing deposits | 177,495,000 | 67,827,000 |
Cash and cash equivalents | 247,468,000 | 119,351,000 |
Securities held to maturity, at amortized cost ($103,626 and $43,770 fair value at December 31, 2023 and December 31, 2022, respectively) | 103,324,000 | 45,097,000 |
Securities available for sale, at fair value ($154,318 and $325,960 amortized cost at December 31, 2023 and December 31, 2022, respectively) | 142,197,000 | 304,637,000 |
Loans held for sale | 3,012,000 | 648,000 |
Loans | 3,342,974,000 | 2,893,978,000 |
Allowance for credit losses - loans ("ACL-Loans") | (43,609,000) | (22,680,000) |
Loans, net | 3,299,365,000 | 2,871,298,000 |
Premises and equipment, net | 69,891,000 | 56,448,000 |
Goodwill | 175,106,000 | 110,206,000 |
Other investments | 21,366,000 | 16,495,000 |
Cash value of life insurance | 61,292,000 | 46,050,000 |
Core deposit intangibles, net | 26,996,000 | 16,829,000 |
Mortgage servicing rights ("MSR") | 13,668,000 | 9,582,000 |
Other real estate owned ("OREO") | 2,573,000 | 2,520,000 |
Investment in minority-owned subsidiaries | 32,926,000 | 44,180,000 |
Other assets | 22,658,000 | 17,091,000 |
TOTAL ASSETS | 4,221,842,000 | 3,660,432,000 |
Deposits: | ||
Interest-bearing deposits | 2,382,185,000 | 2,126,137,000 |
Noninterest-bearing deposits | 1,050,735,000 | 934,092,000 |
Total deposits | 3,432,920,000 | 3,060,229,000 |
Securities sold under repurchase agreements | 75,747,000 | 97,196,000 |
Notes payable | 35,270,000 | 1,929,000 |
Subordinated notes | 12,000,000 | 23,500,000 |
Junior subordinated notes | 4,124,000 | |
Other liabilities | 41,983,000 | 24,475,000 |
Total liabilities | 3,602,044,000 | 3,207,329,000 |
Stockholders' equity: | ||
Serial preferred stock - $0.01 par value; Authorized - 5,000,000 shares | ||
Common stock - $0.01 par value; Authorized - 20,000,000 shares; Issued - 11,515,130 and 10,064,858 shares as of December 31, 2023 and December 31, 2022, respectively; Outstanding - 10,365,131 and 9,021,697 shares as of December 31, 2023 and December 31, 2022, respectively | 115,000 | 101,000 |
Additional paid-in capital | 333,815,000 | 218,263,000 |
Retained earnings | 348,001,000 | 295,496,000 |
Treasury stock, at cost - 1,149,999 and 1,043,161 shares as of December 31, 2023 and December 31, 2022, respectively | (53,387,000) | (45,191,000) |
Accumulated other comprehensive loss | (8,746,000) | (15,566,000) |
Total stockholders' equity | 619,798,000 | 453,103,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,221,842,000 | $ 3,660,432,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Consolidated Balance Sheets | ||
Securities held to maturity, fair value | $ 103,626 | $ 43,770 |
Securities available for sale, amortized cost | $ 154,318 | $ 325,960 |
Serial preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Serial preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,515,130 | 10,064,858 |
Common stock, shares outstanding | 10,365,131 | 9,021,697 |
Treasury stock, shares | 1,149,999 | 1,043,161 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | |||
Loans, including fees | $ 168,815,000 | $ 106,951,000 | $ 93,422,000 |
Securities: | |||
Taxable | 8,460,000 | 5,887,000 | 2,788,000 |
Tax-exempt | 1,035,000 | 1,801,000 | 1,866,000 |
Other | 4,173,000 | 1,895,000 | 310,000 |
Total interest income | 182,483,000 | 116,534,000 | 98,386,000 |
Interest expense: | |||
Deposits | 42,367,000 | 10,268,000 | 7,527,000 |
Securities sold under repurchase agreements | 1,813,000 | 542,000 | 10,000 |
Borrowed funds | 4,823,000 | 1,639,000 | 767,000 |
Total interest expense | 49,003,000 | 12,449,000 | 8,304,000 |
Net interest income | 133,480,000 | 104,085,000 | 90,082,000 |
Provision for credit losses | 4,682,000 | 2,200,000 | 3,100,000 |
Net interest income after provision for credit losses | 128,798,000 | 101,885,000 | 86,982,000 |
Noninterest income: | |||
Service charges | 7,033,000 | 5,810,000 | 6,128,000 |
Income from Ansay and Associates, LLC ("Ansay") | 2,922,000 | 2,558,000 | 2,587,000 |
Income from UFS, LLC ("UFS") | 2,265,000 | 3,055,000 | 2,556,000 |
Loan servicing income | 2,860,000 | 1,922,000 | 1,622,000 |
Valuation adjustment on MSR | 395,000 | 2,865,000 | 1,290,000 |
Net gain on sales of mortgage loans | 897,000 | 1,560,000 | 7,371,000 |
Gain on sale of UFS | 38,904,000 | ||
Other | 2,839,000 | 1,931,000 | 1,967,000 |
Total noninterest income | 58,115,000 | 19,701,000 | 23,521,000 |
Noninterest expense: | |||
Salaries, commissions, and employee benefits | 40,355,000 | 33,155,000 | 28,515,000 |
Occupancy | 5,670,000 | 5,467,000 | 4,198,000 |
Data processing | 8,011,000 | 6,324,000 | 5,344,000 |
Postage, stationery, and supplies | 1,084,000 | 771,000 | 713,000 |
Net loss (gain) on sales and valuations of OREO | 2,133,000 | (146,000) | (20,000) |
Net loss on sale of securities | 7,901,000 | 3,000 | |
Advertising | 326,000 | 271,000 | 227,000 |
Charitable contributions | 944,000 | 718,000 | 534,000 |
Outside service fees | 6,350,000 | 6,727,000 | 3,076,000 |
Amortization of intangibles | 6,324,000 | 2,318,000 | 1,405,000 |
Other | 9,021,000 | 6,348,000 | 6,541,000 |
Total noninterest expense | 88,119,000 | 61,953,000 | 50,536,000 |
Income before provision for income taxes | 98,794,000 | 59,633,000 | 59,967,000 |
Provision for income taxes | 24,280,000 | 14,419,000 | 14,523,000 |
Net Income | $ 74,514,000 | $ 45,214,000 | $ 45,444,000 |
Earnings per share - basic | $ 7.28 | $ 5.58 | $ 5.92 |
Earnings per share - diluted | $ 7.28 | $ 5.58 | $ 5.92 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Net Income | $ 74,514 | $ 45,214 | $ 45,444 |
Unrealized gains (losses) on available for sale securities: | |||
Unrealized holding gains (losses) arising during period | 1,302 | (26,266) | (2,946) |
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity | (1) | (1) | (2) |
Reclassification adjustment for losses included in net income | 7,901 | 3 | |
Income tax benefit (expense) | (2,382) | 7,092 | 795 |
Total other comprehensive income (loss) | 6,820 | (19,175) | (2,150) |
Comprehensive income | $ 81,334 | $ 26,039 | $ 43,294 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings Adoption of new accounting pronouncement | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Adoption of new accounting pronouncement | Total |
Beginning balance at Dec. 31, 2020 | $ 85 | $ 92,847 | $ 221,393 | $ (25,227) | $ 5,759 | $ 294,857 | ||
Net Income | 45,444 | 45,444 | ||||||
Other comprehensive income (loss) | (2,150) | (2,150) | ||||||
Purchase of treasury stock | (8,272) | (8,272) | ||||||
Sale of treasury stock | 114 | 114 | ||||||
Cash dividends | (8,733) | (8,733) | ||||||
Amortization of stock-based compensation | 1,393 | 1,393 | ||||||
Vesting of restricted stock awards | (1,091) | 1,091 | ||||||
Ending balance at Dec. 31, 2021 | 85 | 93,149 | 258,104 | (32,294) | 3,609 | 322,653 | ||
Net Income | 45,214 | 45,214 | ||||||
Other comprehensive income (loss) | (19,175) | (19,175) | ||||||
Purchase of treasury stock | (14,314) | (14,314) | ||||||
Sale of treasury stock | 114 | 114 | ||||||
Cash dividends | (7,822) | (7,822) | ||||||
Amortization of stock-based compensation | 1,662 | 1,662 | ||||||
Vesting of restricted stock awards | (1,303) | 1,303 | ||||||
Shares issued in the acquisition | 16 | 124,755 | 124,771 | |||||
Ending balance at Dec. 31, 2022 | 101 | 218,263 | 295,496 | (45,191) | (15,566) | 453,103 | ||
Net Income | 74,514 | 74,514 | ||||||
Other comprehensive income (loss) | 6,820 | 6,820 | ||||||
Purchase of treasury stock | (10,046) | (10,046) | ||||||
Sale of treasury stock | 195 | 195 | ||||||
Cash dividends | (11,959) | (11,959) | ||||||
Amortization of stock-based compensation | 2,142 | 2,142 | ||||||
Vesting of restricted stock awards | (1,655) | 1,655 | ||||||
Shares issued in the acquisition | 14 | 115,065 | 115,079 | |||||
Ending balance at Dec. 31, 2023 | $ 115 | $ 333,815 | $ (10,050) | $ 348,001 | $ (53,387) | $ (8,746) | $ (10,050) | $ 619,798 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash dividends, per share | $ 1.15 | $ 0.94 | $ 1.14 |
Denmark Bancshares, Inc. | |||
Shares issued in the acquisition (in shares) | 1,579,530 | ||
Hometown Bancorp, Ltd. | |||
Shares issued in the acquisition (in shares) | 1,450,272 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 74,514,000 | $ 45,214,000 | $ 45,444,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 4,682,000 | 2,200,000 | 3,100,000 |
Depreciation and amortization of premises and equipment | 2,073,000 | 1,656,000 | 1,780,000 |
Amortization of intangibles | 6,324,000 | 2,318,000 | 1,405,000 |
Net amortization (accretion) of securities | (2,377,000) | 315,000 | 807,000 |
Amortization of stock-based compensation | 2,142,000 | 1,662,000 | 1,393,000 |
Accretion of purchase accounting valuations | (6,884,000) | (2,559,000) | (1,947,000) |
Net change in deferred loan fees and costs | (1,434,000) | (881,000) | (1,208,000) |
Benefit from deferred income taxes | (1,724,000) | (869,000) | (1,000) |
Change in fair value of MSR and other investments | (693,000) | (3,028,000) | 465,000 |
Loss (gain) from sale and disposal of premises and equipment and valuation allowance | 363,000 | 57,000 | (37,000) |
Net loss (gain) on sale of OREO and valuation allowance | 2,133,000 | (146,000) | (20,000) |
Proceeds from sales of mortgage loans | 74,693,000 | 85,471,000 | 295,904,000 |
Originations of mortgage loans held for sale | (76,160,000) | (83,774,000) | (290,372,000) |
Gain on sales of mortgage loans | (897,000) | (1,560,000) | (7,371,000) |
Realized loss on sale of securities | 7,901,000 | 3,000 | |
Realized gain on sale of UFS | (38,904,000) | ||
Net earnings on life insurance | (1,534,000) | (925,000) | (768,000) |
Decrease (increase) in other assets | (2,006,000) | 2,877,000 | 1,862,000 |
Increase (decrease) in other liabilities | 15,920,000 | (2,407,000) | (5,013,000) |
Net cash provided by operating activities | 52,945,000 | 40,008,000 | 40,283,000 |
Activity in securities available for sale and held to maturity: | |||
Sales | 76,038,000 | 9,087,000 | |
Maturities, prepayments, and calls | 126,737,000 | 14,690,000 | 34,033,000 |
Purchases | (26,646,000) | (142,414,000) | (93,767,000) |
Proceeds from other investments | 248,000 | ||
Net increase in loans | (37,410,000) | (198,000,000) | (41,713,000) |
Proceeds from sale of UFS | 51,674,000 | ||
Proceeds from sale of OREO | 1,827,000 | 320,000 | 1,893,000 |
Net sales (purchases) of Federal Home Loan Bank ("FHLB") stock | 262,000 | (635,000) | |
Net purchases of Federal Reserve Bank ("FRB") stock | (3,880,000) | (3,627,000) | |
Proceeds from life insurance | 265,000 | ||
Proceeds from sale of premises and equipment | 548,000 | ||
Purchases of premises and equipment | (13,484,000) | (6,872,000) | (8,718,000) |
Net cash received in business combination | 89,959,000 | 154,364,000 | |
Net cash provided by (used in) investing activities | 268,996,000 | (177,806,000) | (93,886,000) |
Cash flows from financing activities, net of effects of business combination: | |||
Net increase (decrease) in deposits | (159,410,000) | (72,879,000) | 207,770,000 |
Net decrease in securities sold under repurchase agreements | (21,449,000) | 56,074,000 | 4,745,000 |
Proceeds from advances of notes payable | 121,700,000 | 3,122,700,000 | 5,000,000 |
Repayment of notes payable | (93,107,000) | (3,129,584,000) | (20,380,000) |
Proceeds from issuance of subordinated notes | 6,000,000 | ||
Repayment of subordinated notes | (11,500,000) | ||
Repayment of junior subordinated debentures | (8,248,000) | ||
Dividends paid | (11,959,000) | (7,822,000) | (8,733,000) |
Proceeds from sales of common stock | 195,000 | 114,000 | 114,000 |
Repurchase of common stock | (10,046,000) | (14,314,000) | (8,272,000) |
Net cash provided by (used in) financing activities | (193,824,000) | (39,711,000) | 180,244,000 |
Net increase (decrease) in cash and cash equivalents | 128,117,000 | (177,509,000) | 126,641,000 |
Cash and cash equivalents at beginning of year | 119,351,000 | 296,860,000 | 170,219,000 |
Cash and cash equivalents at end of year | 247,468,000 | 119,351,000 | 296,860,000 |
Cash paid during the year for: | |||
Interest | 44,145,000 | 11,311,000 | 7,064,000 |
Income taxes | 23,806,000 | 14,135,000 | 16,760,000 |
Supplemental schedule of noncash activities: | |||
Loans transferred to OREO | 24,000 | ||
Closed branch building transferred to OREO | 2,623,000 | 1,115,000 | 140,000 |
MSR resulting from sale of loans | 879,000 | 771,000 | 1,862,000 |
Amortization of unrealized holding gains on securities transferred from available for sale to held to maturity recognized in other comprehensive income, net of tax | (1,000) | (1,000) | (2,000) |
Change in unrealized gains and losses on investment securities available for sale, net of tax | (1,080,000) | (19,174,000) | (2,148,000) |
Acquisition: | |||
Fair value of assets acquired | 615,105,000 | 685,840,000 | |
Fair value of liabilities assumed | 549,564,000 | 612,700,000 | |
Excess of assets acquired over liabilities assumed | 65,541,000 | 73,140,000 | |
Common stock issued in acquisition | 115,079,000 | 124,771,000 | |
Joint Venture | UFS | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Undistributed income of joint venture | (2,265,000) | (3,055,000) | (2,556,000) |
Activity in securities available for sale and held to maturity: | |||
Dividends received | 1,747,000 | 2,408,000 | 2,646,000 |
Joint Venture | Ansay | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Undistributed income of joint venture | (2,922,000) | (2,558,000) | (2,587,000) |
Activity in securities available for sale and held to maturity: | |||
Dividends received | $ 1,924,000 | $ 1,960,000 | $ 1,840,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies The accounting and reporting policies of Bank First Corporation and Subsidiaries (“Company”) conform to generally accepted accounting principles (“GAAP”) in the United States and general practices within the financial institution industry. Significant accounting and reporting policies are summarized below. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Veritas Asset Holdings, LLC (“Veritas”) and Bank First, National Association (“Bank”). Veritas was dissolved by the Company during the year ended December 31, 2023. The Bank’s wholly owned subsidiaries are Bank First Investments, Inc., TVG Holdings, Inc. (“TVG") and BFC Title LLC. All significant intercompany balances and transactions have been eliminated. The Bank and TVG have investments in minority-owned subsidiaries that are accounted for using the equity method in the consolidated financial statements. The Bank owned 49.8% of UFS, which provides data processing solutions to over 60 banks in the Midwest, through October 1, 2023. On that date it sold 100% of its member interest in UFS to a third party. TVG owns 40.0% of Ansay providing clients throughout the Midwest with superior insurance and risk management solutions. Organization The Company provides a variety of financial services to individual and business customers, primarily located in Wisconsin, through the Bank. The Bank is subject to competition from other traditional and nontraditional financial institutions and is also subject to the regulations of certain federal agencies and undergoes periodic examinations by those regulatory authorities including the Office of the Comptroller of the Currency and the Federal Reserve Bank. Use of Estimates in Preparation of Financial Statements The preparation of the accompanying consolidated financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates. The allowance for credit losses, carrying value of real estate owned, carrying value of goodwill, fair value of mortgage servicing rights, and fair values of financial instruments are inherently subjective and are susceptible to significant change. Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company recognizes the full fair value of the assets acquired and liabilities assumed and immediately expenses transaction costs. If the amount of consideration exceeds the fair value of assets purchased less the fair value of liabilities assumed, goodwill is recorded. Alternatively, if the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid, a gain (bargain purchase gain) is recorded. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Results of operations of the acquired business are included in the statement of income from the effective date of the acquisition. Additional information regarding acquisitions is provided in Note 2. Cash and Cash Equivalents For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash on hand, interest-bearing and noninterest-bearing accounts in other financial institutions, and federal funds sold, all of which have original maturities of three months or less. Generally, federal funds are purchased and sold for one day periods. In the normal course of business, the Company maintains cash and due from bank balances with correspondent banks. Accounts at each institution that are insured by the Federal Deposit Insurance Corporation have up to $250,000 of insurance. Total uninsured balances held at December 31, 2023 and 2022 were approximately $3,100,000 and $2,900,000, respectively. Securities Securities are classified as held to maturity (“HTM”) or available for sale (“AFS”) at the time of purchase. Investment securities classified as HTM, which management has the intent and ability to hold to maturity, are reported at amortized cost. Investment securities classified as AFS, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of other comprehensive income. The net carrying value of debt securities classified as HTM or AFS is adjusted for amortization of premiums and accretion of discounts utilizing the effective interest method over the expected estimated maturity. Such amortization and accretion is included as an adjustment to interest income from securities. Interest and dividends are included in interest income from securities. Transfers of debt securities into the HTM classification from the AFS classification are made at fair value as of the date of transfer. The unrealized holding gain or loss as of the date of transfer is retained in other comprehensive income and in the carrying value of the HTM securities, establishing the amortized cost of the security. These unrealized holding gains and losses as of the date of transfer are amortized or accreted over the remaining life of the security. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Prior to January 1, 2023, unrealized gains or losses considered temporary and the noncredit portion of unrealized losses deemed other-that-temporary were reported as an increase or decrease in accumulated other comprehensive income. The credit related portion of unrealized losses deemed other-than-temporary were recorded in current period earnings. Subsequent to January 1, 2023, as a result of adopting ASU 2016-13, Financial Instruments – Credit Losses Other Investments Other investments are carried at cost, or, where available, recently observable market prices, which approximates fair value, and consist of FHLB stock, FRB stock and Bankers’ Bancorporation stock. Other investments are evaluated for impairment at least on an annual basis. Loans Held for Sale Loans originated and intended for sale in the secondary market, consisting of the current origination of certain fixed-rate mortgage loans, are carried at the lower of cost or estimated fair value in the aggregate. A gain or loss is recognized at the time of the sale reflecting the present value of the difference between the contractual interest rate of the loans sold and the yield to the investor, adjusted for the initial value of mortgage servicing rights associated with loans sold with servicing retained. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Loans and Related Interest Income - Originated Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though they may be placed in such status earlier. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. A description of each segment of the loan portfolio, including the corresponding credit risk, is included below: Commercial / Industrial Commercial Real Estate – Owner Occupied and Non-owner Occupied Multi-Family Construction and Development Residential 1-4 Family Consumer Other Loans and Related Interest Income - Acquired Loans purchased in acquisition transactions are acquired loans, and are recorded at their fair value at the acquisition date. Prior to January 1, 2023, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., performing acquired loans). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses. Subsequent to January 1, 2023, as a result of adopting ASU 2016-13, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is accreted or amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance is recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Credit Losses - Loans The ACL – Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL – Loans based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL – Loans. Estimating the amount of the ACL – Loans is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. We establish the ACL – Loans through charges to earnings, which are shown in the statements of income as the provision for credit losses. Specifically identifiable and quantifiable known losses are promptly charged off against the allowance. Prior to January 1, 2023, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included allocations for specifically impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments were also provided for certain environmental and other qualitative factors. Subsequent to January 1, 2023, as a result of adopting ASU 2016-13, the Company uses a current expected loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL – Loans estimate under CECL, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; calculates the historical loss rates for the segmented loan pools; applies the loss rates over the calculated life of the pooled loans; adjusts the forecasted macro-level economic conditions; and determines qualitative adjustments based on factors and conditions unique to the Company’s portfolio. The Company further individually evaluates PCD loans and other loans that no longer share similar risk characteristics with the collectively evaluated pools based on the amount and timing of estimated future cash flows or collateral values and establishes specific reserves when these estimated future cash flows or collateral values do not justify the carrying value of the loan. Management believes that the ACL - Loans is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the ACL - Loans. Such agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examination. Allowance for Credit Losses – Unfunded Commitments In addition to the ACL – Loans, the Company has established an allowance for unfunded commitments, included in other liabilities on the consolidated balance sheets, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. The ACL – Unfunded Commitments is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL – Loans. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets. Premises and equipment acquired in corporate acquisitions are recorded at estimated fair value on the date of acquisition. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of premises and equipment are reflected in income. Premises and equipment, and other long-term assets, are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Depreciation expense is computed using the straight-line method over the following estimated useful lives. Buildings and improvements 40 years Land improvements 20 years Furniture, fixtures and equipment 2 - 7 years Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure as well as buildings that the Company no longer utilizes in its operations are held for sale and are initially recorded at fair value at the date of foreclosure or abandonment less estimated costs to sell the asset, establishing a new cost basis. Any write downs at the time of foreclosure are charged to the allowance for credit loss. OREO properties acquired in conjunction with corporate acquisitions are recorded at fair value on the date of acquisition. Subsequent to foreclosure, valuations are periodically performed by management, and a valuation allowance is established if fair value declines below carrying value. Costs relating to the development and improvement of the property are capitalized. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses. Intangible Assets and Goodwill Intangible assets consist of the value of core deposits, mortgage servicing assets and the excess of purchase price over fair value of net assets (goodwill). See Note 2 for additional information on acquisitions completed in 2023 and 2022. The value of core deposits are typically recorded in connection with a whole bank or branch acquisition. The value of the core deposit intangible represents the estimated value of the long-term deposit relationships acquired in the transaction. Determining the value of cored deposits and their average lives involves multiple assumptions and estimates and is typically determined by performing a discounted cash flow analysis, which involves a combination of any or all of the following assumptions: customer attrition/runoff, alternative funding costs, deposit servicing costs, and discount rates. The value of core deposits are stated at cost less accumulated amortization and are amortized on a sum of the year’s digits basis over a period of one to ten years. Mortgage servicing rights are recognized as separate assets when rights are acquired through purchase or through sale of mortgage loans with servicing retained. Servicing rights acquired through sale of financial assets are recorded based on the fair value of the servicing right. The determination of fair value is based on a valuation model and includes stratifying the mortgage servicing rights by predominant characteristics, such as interest rates and terms, and estimating the fair value of each stratum based on the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, and prepayment speeds. Changes in fair value are recorded as an adjustment to earnings. The Company performs a “qualitative” assessment of goodwill to determine whether further impairment testing of indefinite-lived intangible assets is necessary on at least an annual basis. If it is determined, as a result of performing a qualitative assessment over goodwill, that it is more likely than not that goodwill is impaired, management will perform an impairment test to determine if the carrying value of goodwill is realizable. The Company evaluated goodwill and core deposit intangibles for impairment during 2023, 2022 and 2021, determining that there was no goodwill or core deposit intangible impairment. Income Taxes The Company files one consolidated federal income tax return and four state returns. Federal income tax expense is allocated to each subsidiary based on an intercompany tax sharing agreement. Deferred tax assets and liabilities have been determined using the liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities and the current enacted tax rates which will be in effect when these differences are expected to reverse. Provision (benefit) for deferred taxes is the result of changes in the deferred tax assets and liabilities. Treasury Stock Common stock shares repurchased by the Company are recorded as treasury stock at cost. Securities Sold Under Repurchase Agreements The Company sells securities under repurchase agreements. These transactions are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral to the counterparty, as necessary. Off-Balance-Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments including commitments to extend credit, unfunded commitments under lines of credit, and letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. Advertising Advertising costs are generally expensed as incurred. Per Share Computations Weighted average shares outstanding were 10,231,569, 8,104,117, and 7,680,896 for the years ended December 31, 2023, 2022 and 2021, respectively. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for basic and diluted earnings per share calculations. There were 58,359, 59,211, and 59,264 average shares of dilutive instruments outstanding during the years ended December 31, 2023, 2022, and 2021. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that there are any such matters that will have a material effect on the consolidated financial statements at December 31, 2023 and 2022. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Bank, the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. Comprehensive Income GAAP normally requires that recognized revenues, expenses, gains and losses be included in net income. In addition to net income, another component of comprehensive income includes the after-tax effect of changes in unrealized gains and losses on available for sale securities. This item is reported as a separate component of stockholders’ equity. The Company presents comprehensive income in the statement of comprehensive income. Stock-based Compensation The Company uses the fair value method of recognizing expense for stock-based compensation based on the fair value of restricted stock awards at the date of grant as prescribed by accounting standards codification Topic 781-10 Compensation/Stock Compensation. Mortgage Banking Derivatives Commitments to fund mortgage loans, at a set interest rate, (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Bank enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into in order to hedge the change in interest rates resulting from its commitments to fund loans. The forward commitments for the future delivery of mortgage loans are based on the Bank’s “best efforts” and therefore the Bank is not penalized if a loan is not delivered to the investor if the loan did not get originated. Changes in the fair values of these derivatives generally offset each other and are included in “other income” in the consolidated statements of income. Reclassifications Certain 2022 and 2021 amounts have been reclassified to conform to the presentation used in 2023. These reclassifications had no effect on the operations, financial condition or cash flows of the Company. New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. Recently Implemented Accounting Standards As a result of implementing ASU 2016-13 on January 1, 2023, the Company recorded a reduction to retained earnings of approximately $10,050,000. The transition adjustment included an increase to the ACL-Loans of $10,972,000 and an increase in the ACL – Unfunded Commitments of $3,264,000, offset by applicable deferred taxes. The Company adopted ASU 2016-13 using the prospective transition approach for financial assets considered PCD that were previously classified as PCI. The amortized cost of the PCD assets were adjusted to reflect the addition of $0.3 million to the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost) will be accreted into interest income at the effective interest rate over the remaining life of the assets. The following table presents the changes in the allowance for credit losses required as a result of this adoption: January 1, 2023 As December 31, 2022 Reported After ASU Pre-ASU 2016-13 Impact of Allowance for Credit Losses 2016-13 Adoption Adoption 2016-13 Adoption Assets Loans held for investments Commercial/industrial $ 5,930 $ 4,071 $ 1,859 Commercial real estate - owner occupied 7,186 5,204 1,982 Commercial real estate - non-owner occupied 3,805 2,644 1,161 Commercial real estate - multi-family 3,514 2,761 753 Construction and development 3,655 1,592 2,063 Residential 1-4 family 8,511 5,944 2,567 Consumer 934 314 620 Other 117 150 (33) Loans held for investments, total 33,652 22,680 10,972 Liabilities Unfunded commitments 3,264 - 3,264 Total $ 36,916 $ 22,680 $ 14,236 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions | |
Acquisitions | Note 2 Acquisitions Hometown Bancorp, Ltd. On February 10, 2023, the Company completed a merger with Hometown Bancorp, Ltd. (“Hometown”), a bank holding company headquartered in Fond du Lac, Wisconsin, pursuant to the Agreement and Plan of Bank Merger (“Merger Agreement”), dated as of July 25, 2022 by and among the Company and Hometown, whereby Hometown merged with and into the Company, and Hometown Bank, Hometown’s wholly-owned banking subsidiary, merged with and into the Bank. Hometown’s principal activity was the ownership and operation of Hometown Bank, a state-chartered banking institution that operated ten (10) branches in Wisconsin at the time of closing. The merger consideration totaled approximately $130,452,000. Pursuant to the terms of the Merger Agreement, Hometown shareholders could elect to receive either 0.3962 shares of the Company’s common stock or $29.16 in cash for each outstanding share of Hometown common stock, subject to a maximum of 30% cash consideration in total, with cash paid in lieu of any remaining fractional share. Company stock issued totaled 1,450,272 shares valued at approximately $115,079,000, with cash of $15,373,000 comprising the remainder of merger consideration. The fair value of the assets acquired and liabilities assumed on February 10, 2023 was as follows: As Recorded by Fair Value As Recorded by Hometown Adjustments the Company Cash, cash equivalents and securities $ 174,582 $ (1,010) $ 173,572 Other investments 1,195 — 1,195 Loans, net 406,168 (10,367) 395,801 Premises and equipment, net 7,577 (1,109) 6,468 Core deposit intangible 405 16,085 16,490 Other assets 28,011 (6,432) 21,579 Total assets acquired $ 617,938 $ (2,833) $ 615,105 Deposits $ 532,165 $ 209 $ 532,374 Other borrowings 5,000 (331) 4,669 Junior subordinated debentures 12,372 (1,464) 10,908 Other liabilities 469 1,144 1,613 Total liabilities assumed $ 550,006 $ (442) $ 549,564 Excess of assets acquired over liabilities assumed $ 67,932 $ (2,391) $ 65,541 Less: purchase price 130,452 Goodwill 64,911 Refinement to fair value estimates (1) (30) Goodwill (after refinement) $ 64,881 (1) Refinement consists of adjustments to the initial fair value estimates of other assets and liabilities. Goodwill of $64,881,000 arising from the merger consisted largely of synergies and the cost saves resulting from the combining of operations of the companies, and is not expected to be deductible for income tax purposes. The Company purchased loans through this merger for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination. The carrying value of these loans at acquisition was as follows: The Company purchased loans through the acquisition of Hometown for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination. The carrying amount of these loans at acquisition was as follows: February 10, 2023 Purchase price of PCD loans at acquisition $ 25,778 Non-credit discount on PCD loans at acquisition 4,498 Allowance for credit losses on PCD loans at acquisition 5,534 Par value of PCD acquired loans at acquisition $ 35,810 Denmark Bancshares, Inc . On August 12, 2022, the Company completed a merger with Denmark Bancshares, Inc. (“Denmark”), a bank holding company headquartered in Denmark, Wisconsin, pursuant to the Agreement and Plan of Bank Merger, dated as of January 18, 2022 by and between the Company and Denmark, whereby Denmark merged with and into the Company, and Denmark State Bank, Denmark’s wholly-owned banking subsidiary, merged with and into the Bank. Denmark’s principal activity was the ownership and operation of Denmark State Bank, a state-chartered banking institution that operated seven (7) branches in Wisconsin at the time of closing. The merger consideration totaled approximately $128,781,000. Pursuant to the terms of the merger agreement, Denmark shareholders could elect to receive either 0.5276 of a share of the Company’s common stock or $38.10 in cash for each outstanding share of Denmark common stock, subject to a maximum of 20% cash consideration in total, with cash paid in lieu of any remaining fractional share. Company stock issued totaled 1,579,530 shares valued at approximately $124,771,000, with cash of $4,010,000 comprising the remainder of merger consideration. The fair value of the assets acquired and liabilities assumed on August 12, 2022 was as follows: As Recorded by Fair Value As Recorded by (in thousands) Denmark Adjustments the Company Cash, cash equivalents and securities $ 188,017 $ (148) $ 187,869 Other investments 3,566 — 3,566 Loans, net 459,413 (2,358) 457,055 Premises and equipment, net 5,980 (1,635) 4,345 Core deposit intangible — 15,112 15,112 Other assets 17,704 189 17,893 Total assets acquired $ 674,680 $ 11,160 $ 685,840 Deposits $ 604,636 $ 166 $ 604,802 Other borrowings 842 — 842 Other liabilities 3,951 3,105 7,056 Total liabilities assumed $ 609,429 $ 3,271 $ 612,700 Excess of assets acquired over liabilities assumed $ 65,251 $ 7,889 $ 73,140 Less: purchase price 128,781 Goodwill (originally recorded) 55,641 Refinement to fair value estimates (1) (773) Goodwill (after refinement) $ 54,868 (1) Refinement consists of adjustments to the initial fair value estimates of other assets and liabilities, primarily related to accrued and deferred income taxes. The following unaudited pro forma information is presented for illustrative purposes only. The pro forma information should not be relied upon as being indicative of the historical results of operations the companies would have had if the merger had occurred before such periods or the future results of operations that the companies will experience as a result of the merger. The pro forma information, although helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings, opportunities to earn additional revenue, the impact of restructuring and merger-related expenses, or other factors that may result as a consequence of the merger and, accordingly, does not attempt to predict or suggest future results. The unaudited pro forma information set forth below gives effect to the merger as if it had occurred on January 1, 2021, the beginning of the earliest period presented. Year Ended (in thousands, except per share data) December 31, 2022 Total revenue, net of interest expense $ 139,617 Net income $ 47,416 Diluted earnings per common share $ 5.21 The Company accounted for these transactions under the acquisition method of accounting, and thus, the financial position and results of operations of Hometown and Denmark prior to the consummation dates were not included in the accompanying consolidated financial statements. The Company determined the fair value of core deposit intangibles, securities, premises and equipment, loans, other assets and liabilities and deposits with the assistance of third-party valuations, appraisals and third-party advisors. The estimated fair values are subject to refinement for up to one year after deal consummation as additional information becomes available relative to the closing date fair values. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2023 | |
Securities | |
Securities | Note 3 Securities The following is a summary of available for sale securities (dollar amounts in thousands): Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value December 31, 2023 Obligations of U.S. Government sponsored agencies $ 31,453 $ 4 $ (3,163) $ 28,294 Obligations of states and political subdivisions 63,929 77 (5,760) 58,246 Mortgage-backed securities 37,789 5 (1,664) 36,130 Corporate notes 20,657 — (1,619) 19,038 Certificates of deposit 490 — (1) 489 Total available for sale securities $ 154,318 $ 86 $ (12,207) $ 142,197 December 31, 2022 U.S. Treasury securities $ 149,614 $ — $ (7,517) $ 142,097 Obligations of U.S. Government sponsored agencies 24,935 — (3,186) 21,749 Obligations of states and political subdivisions 90,701 88 (7,603) 83,186 Mortgage-backed securities 38,701 — (2,064) 36,637 Corporate notes 21,005 381 (1,392) 19,994 Certificates of deposit 1,004 — (30) 974 Total available for sale securities $ 325,960 $ 469 $ (21,792) $ 304,637 The following is a summary of held to maturity securities (dollar amounts in thousands): Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value December 31, 2023 U.S. Treasury securities $ 99,173 $ 1,372 $ (1,070) $ 99,475 Obligations of states and political subdivisions 4,151 — — 4,151 Total held to maturity securities $ 103,324 $ 1,372 $ (1,070) $ 103,626 December 31, 2022 U.S. Treasury securities $ 39,902 $ 115 $ (1,440) $ 38,577 Obligations of states and political subdivisions 5,195 — (2) 5,193 Total held to maturity securities $ 45,097 $ 115 $ (1,442) $ 43,770 The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (dollar amounts in thousands): Less Than 12 Months Greater Than 12 Months Total Number Fair Unrealized Fair Unrealized Fair Unrealized of Value Losses Value Losses Value Losses Securities December 31, 2023 - Available for Sale Obligations of U.S. Government sponsored agencies $ 6,519 $ (173) $ 19,519 $ (2,990) $ 26,038 $ (3,163) 24 Obligations of states and political subdivisions 6,806 (71) 40,959 (5,689) 47,765 (5,760) 65 Mortgage-backed securities 5,751 (95) 28,693 (1,569) 34,444 (1,664) 104 Corporate notes 4,926 (68) 12,487 (1,551) 17,413 (1,619) 9 Certificate of deposits — — 489 (1) 489 (1) 2 Totals $ 24,002 $ (407) $ 102,147 $ (11,800) $ 126,149 $ (12,207) 204 December 31, 2023 - Held to Maturity U.S. Treasury securities $ 31,785 $ (99) $ 35,362 $ (971) $ 67,147 $ (1,070) 49 Obligations of states and political subdivisions — — 220 — 220 — 1 Totals $ 31,785 $ (99) $ 35,582 $ (971) $ 67,367 $ (1,070) 50 December 31, 2022 - Available for Sale U.S. Treasury securities $ 99,433 $ (559) $ 42,664 $ (6,958) $ 142,097 $ (7,517) 12 Obligations of U.S. Government sponsored agencies 6,735 (652) 15,014 (2,534) 21,749 (3,186) 16 Obligations of states and political subdivisions 50,839 (2,650) 15,933 (4,953) 66,772 (7,603) 103 Mortgage-backed securities 35,731 (1,993) 879 (71) 36,610 (2,064) 107 Corporate notes 9,701 (920) 3,080 (472) 12,781 (1,392) 8 Certificate of deposits 974 (30) — — 974 (30) 4 Totals $ 203,413 $ (6,804) $ 77,570 $ (14,988) $ 280,983 $ (21,792) 250 December 31, 2022 - Held to Maturity U.S. Treasury securities $ 29,464 $ (1,306) $ 4,868 $ (134) $ 34,332 $ (1,440) 15 Obligations of states and political subdivisions 417 (2) — — 417 (2) 2 Totals $ 29,881 $ (1,308) $ 4,868 $ (134) $ 34,749 $ (1,442) 17 As of December 31, 2023, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to these securities. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. As of December 31, 2023, the Company did not intend to sell these securities and it was more likely than not that the Company would not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. Furthermore, the Company monitors the credit quality of debt securities held to maturity quarterly through the use of credit ratings. U.S. Treasury securities at December 31, 2023 were all rated AAA and have the full faith and credit backing of the United States Government. Obligations of states and political subdivisions in an unrealized loss position at December 31, 2023 are not material to the financial statements. Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. The following is a summary of amortized cost and estimated fair value of securities, by contractual maturity, as of December 31, 2023 (dollar amounts in thousands): Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 6,465 $ 6,394 $ 17,772 $ 17,639 Due after one year through 5 years 16,292 16,165 63,038 62,299 Due after 5 years through ten years 39,863 36,210 22,514 23,688 Due after 10 years 53,909 47,298 — — Subtotal 116,529 106,067 103,324 103,626 Mortgage-backed securities 37,789 36,130 — — Total $ 154,318 $ 142,197 $ 103,324 $ 103,626 Following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, from the years ended December 31 (dollar amounts in thousands): 2023 2022 2021 Proceeds from sales of securities $ 76,038 $ — $ 9,087 Gross gains on sales 122 — — Gross losses on sales (8,023) — (3) As of December 31, 2023 and 2022, the carrying values of securities pledged to secure public deposits, securities sold under repurchase agreements, and for other purposes required or permitted by law were approximately $204,848,000 and $226,892,000, respectively. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Loans | |
Loans | Note 4 Loans The composition of loans at December 31 is as follows (dollar amounts in thousands): 2023 2022 Commercial/industrial $ 488,498 $ 492,563 Commercial real estate - owner occupied 893,977 717,401 Commercial real estate - non-owner occupied 473,829 391,133 Multi-family 332,959 290,650 Construction and development 201,823 200,022 Residential 1 ‑ 4 family 888,412 739,339 Consumer 50,741 44,796 Other 14,980 18,905 Subtotals 3,345,219 2,894,809 ACL - Loans (43,609) (22,680) Loans, net of ACL - Loans 3,301,610 2,872,129 Deferred loan fees, net (2,245) (831) Loans, net $ 3,299,365 $ 2,871,298 The ACL - Loans is based on the Company’s evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers’ ability to repay a loan, the estimated value of any underlying collateral, composition of the loan portfolio and other relevant factors. Loans with similar risk characteristics are evaluated in pools and the Company utilizes a discounted cash flow (“DCF”) method to estimate ACL for all loan pools. Under the DCF method, probability of default (“PD”) and loss given default (“LGD”) are applied to a projective model of the pool’s cash flows while considering prepayment and principal curtailment effects. The analysis produces expected cash flows for each instrument in the pool by pairing loan-level term information (maturity date, payment amount, interest rate, etc.) with top-down pool assumptions (default rates and prepayment speeds). Management has determined that peer loss experience provides the best basis for its assessment of expected credit losses to determine the ACL. The Company utilized peer call report data to measure historical credit loss experience with similar risk characteristics within the segments over an economic cycle. Management reviewed the historical loss information to appropriately adjust for differences in current asset specific risk characteristics. The historical loss experience estimate by pool is then adjusted by forecast factors that are quantitatively related to the Company’s historical credit loss experience. For all loan pools, the Company utilizes and forecasts the national unemployment rate as a loss driver. The Company also utilizes and forecasts national GDP growth as a second loss driver for its commercial real estate – owner occupied and construction and development pools, the CRE (SA) interest rates and price index as a second loss driver for its commercial real estate – non-owner occupied pool, the real retail and food services sales index as a second loss driver for its consumer loan pool, and the S&P Case-Schiller US home price index as a second loss driver for its residential 1-4 family pool. For both national unemployment and national GDP growth the Company utilized a twelve-month forecast period, followed by a twelve-month reversion to the mean. The Company utilized the high-end range of the Federal Reserve Bank Open Market Committee forecast for national unemployment and the low-end range for national GDP growth at December 31, 2023. As of December 31, 2023, the Company anticipates the national unemployment rate to rise during the forecast period and the national GDP growth rate to decline. Due to a lack of reliable forecasts, the Company utilized long-term averages for the remaining loss drivers. The reasonable and supportable period and reversion period are re-evaluated each quarter by the Company and are dependent on the current economic environment among other factors. The expected credit losses for each loan pool are then adjusted for changes in qualitative factors not inherently considered in the quantitative analyses. The qualitative adjustments either increase or decrease the quantitative model estimation. The Company considers factors that are relevant within the qualitative framework which include the following: lending policy, changes in nature and volume of loans, staff experience, changes in volume and trends of problem loans, concentration risk, trends in underlying collateral values, external factors, quality of loan review system and other economic conditions. Expected credit losses for loans that no longer share similar risk characteristics with the collectively evaluated pools are excluded from the collective evaluation and estimated on an individual basis. Specific allocations of the ACL for credit losses on individually evaluated loans are estimated on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. In addition to several minor refinements to the model during the fourth quarter of 2023, the Company performed a loss driver refresh study to determine whether the utilized loss drivers remained appropriate. While the fundamental methodology remained unchanged, as a result of this study, the real retail and food services sales index was introduced and applied to the consumer loan pool. In addition, multi-family loans were separated from commercial real estate – non-owner occupied into their own pool. The net impact of these changes during the fourth quarter of 2023 were not material to the model as the ACL-Loans to total loans ratio was 1.30% both prior to and after these changes were made. A summary of the activity in ACL - Loans by loan type as of December 31, 2023 is as follows (dollar amounts in thousands): Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner Multi- and Residential Industrial Occupied Occupied Family Development 1-4 Family Consumer Other Total ACL - Loans - January 1, 2023 $ 4,071 $ 5,204 $ 2,644 $ 2,761 $ 1,592 $ 5,944 $ 314 $ 150 $ 22,680 Adoption of CECL 1,859 1,982 1,161 753 2,063 2,567 620 (33) 10,972 ACL - Loans on PCD loans acquired 1,082 4,424 — — — 28 — — 5,534 Charge-offs — — — — — — (4) (84) (88) Recoveries 22 70 — — — 106 4 17 219 Provision (1,069) 605 1,895 1,240 (58) 1,975 (319) 23 4,292 ACL - Loans - December 31, 2023 $ 5,965 $ 12,285 $ 5,700 $ 4,754 $ 3,597 $ 10,620 $ 615 $ 73 $ 43,609 A summary of the activity in the allowance for loan losses (“ALL”) by loan type as of December 31, 2022 is as follows (dollar amounts in thousands): Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner Multi- and Residential Industrial Occupied Occupied Family Development 1-4 Family Consumer Other Total ALL - January 1, 2022 $ 3,699 $ 5,633 $ 3,123 $ 2,028 $ 984 $ 4,445 $ 224 $ 179 $ 20,315 Charge-offs — (890) — — — (40) (27) (48) (1,005) Recoveries 499 74 360 — 152 14 6 65 1,170 Provision (127) 387 (106) — 456 1,525 111 (46) 2,200 ALL December 31, 2022 4,071 5,204 3,377 2,028 1,592 5,944 314 150 22,680 ALL ending balance individually evaluated for impairment — — 8 — — — — — 8 ALL ending balance collectively evaluated for impairment $ 4,071 $ 5,204 $ 3,369 $ 2,028 $ 1,592 $ 5,944 $ 314 $ 150 $ 22,672 Loans outstanding - December 31, 2022 $ 492,563 $ 717,401 $ 391,133 $ 290,650 $ 200,022 $ 739,339 $ 44,796 $ 18,905 $ 2,894,809 Loans ending balance individually evaluated for impairment 284 2,487 514 — — 201 — — 3,486 Loans ending balance collectively evaluated for impairment $ 492,279 $ 714,914 $ 390,619 $ 290,650 $ 200,022 $ 739,138 $ 44,796 $ 18,905 $ 2,891,323 In addition to the ACL-Loans, the Company has established an ACL-Unfunded Commitments, classified in other liabilities on the consolidated balance sheets. This allowance is maintained to absorb losses arising from unfunded loan commitments related to fixed and variable rate commitments to extend credit, and is determined quarterly based on methodology similar to the methodology for determining the ACL-Loans. This quarterly assessment includes consideration of the likelihood that funding of these commitments will eventually occur. The Company has identified the unfunded portion of certain lines of credit, credit card arrangements and letters of credit as unconditionally cancellable credit exposures, meaning the Company can cancel the unfunded commitment at any time. No credit loss estimate is recorded for off-balance sheet credit exposures that are unconditionally cancelable by the Company or for undrawn amounts under such arrangements that may be drawn prior to the cancellation of the arrangement. The ACL - Unfunded Commitments was $3,849,000 and $0 at December 31, 2023 and 2022, respectively. See Note 20 for further information on commitments. The provision for credit losses is determined by the Company as the amount to be added to the ACL loss accounts for various types of financial instruments including loans, investment securities, and off-balance sheet credit exposures after net charge-offs have been deducted to bring the ACL to a level that, in management’s judgment, is necessary to absorb expected credit losses over the lives of the respective financial instruments. The following table presents the components of the provision for credit losses (dollar amounts in thousands): Year Ended December 31, 2023 December 31, 2022 Provision for credit losses on: Loans $ 4,292 $ 2,200 Unfunded Commitments 390 — Total provision for credit losses $ 4,682 $ 2,200 A summary of past due loans as of December 31, 2023 are as follows (dollar amounts in thousands): 90 Days Non-Accrual 30-89 Days or more with no Past Due Past Due Non- specifically Accruing and Accruing Accrual Total allocated ACL Commercial/industrial $ 4,303 $ 106 $ 1,344 $ 5,753 $ 365 Commercial real estate - owner occupied 180 252 3,877 4,309 343 Commercial real estate - non-owner occupied 14 — — 14 — Multi-family — — — — — Construction and development — — — — — Residential 1 ‑ 4 family 871 507 429 1,807 394 Consumer 68 28 12 108 11 Other — — — — — $ 5,436 $ 893 $ 5,662 $ 11,991 $ 1,113 A summary of past due loans as of December 31, 2022 are as follows (dollar amounts in thousands): 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 192 $ — $ 418 $ 610 Commercial real estate - owner occupied 1,301 — 2,688 3,989 Commercial real estate - non-owner occupied — — — — Multi-family — — — — Construction and development 237 — 17 254 Residential 1 ‑ 4 family 774 268 505 1,547 Consumer 19 5 — 24 Other — — — — $ 2,523 $ 273 $ 3,628 $ 6,424 A loan is considered to be collateral dependent when, based upon management’s assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. For collateral dependent loans, expected credit losses are based on the estimated fair value of the collateral at the balance sheet date, with consideration for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation (dollar amounts in thousands). A significant portion of the loan balances in this table and essentially all of the allowance allocations relate to PCD loans which were acquired from Hometown. Real estate collateral primarily consists of operating facilities of the underlying borrowers. Other business assets collateral primarily consists of receivables and inventory of the underlying borrowers. Collateral Type As of December 31, 2023 Other Without an With an Allowance Real Estate Business Assets Total Allowance Allowance Allocation Commercial/industrial $ — $ 5,320 $ 5,320 $ 47 $ 5,273 $ 1,089 Commercial real estate - owner occupied 8,131 — 8,131 794 7,337 3,156 Commercial real estate - non-owner occupied — — — — — — Multi-family — — — — — — Construction and development — — — — — — Residential 1 ‑ 4 family 35 — 35 35 — — Consumer — — — — — — Other — — — — — — Total Loans $ 8,166 $ 5,320 $ 13,486 $ 876 $ 12,610 $ 4,245 Prior to the adoption of ASU 2016-13, the allowance included specific reserves for certain individually evaluated impaired loans. Specific reserves reflected estimated losses on impaired loans from management’s analysis developed through specific credit allocations. The following table shows a summary of impaired loans individually evaluated as of December 31, 2022 (dollar amounts in thousands): Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non - Owner Multi- and Residential Industrial Occupied Occupied Family Development 1 ‑ 4 Family Consumer Other Total With an allowance recorded: Recorded investment $ — $ — $ 18 $ — $ — $ — $ — $ — $ 18 Unpaid principal balance — — 18 — — — — — 18 Related allowance — — 8 — — — — — 8 With no related allowance recorded: Recorded investment $ 284 $ 2,487 $ 497 $ — $ — $ 200 $ — $ — $ 3,468 Unpaid principal balance 284 2,487 497 — — 200 — — 3,468 Related allowance — — — — — — — — — Total: Recorded investment $ 284 $ 2,487 $ 515 $ — $ — $ 200 $ — $ — $ 3,486 Unpaid principal balance 284 2,487 515 — — 200 — — 3,486 Related allowance — — 8 — — — — — 8 Average recorded investment $ 361 $ 3,726 $ 1,017 $ — $ — $ 237 $ — $ — $ 5,341 The Company utilizes a numerical risk rating system for commercial relationships. All other types of relationships (ex: residential, consumer, other) are assigned a “Pass” rating, unless they have fallen 90 days past due or more, at which time they receive a rating of 7. The Company uses split ratings for government guaranties on loans. The portion of a loan that is supported by a government guaranty is included with other Pass credits. The determination of a commercial loan risk rating begins with completion of a matrix, which assigns scores based on the strength of the borrower’s debt service coverage, collateral coverage, balance sheet leverage, industry outlook, and customer concentration. A weighted average is taken of these individual scores to arrive at the overall rating. This rating is subject to adjustment by the loan officer based on facts and circumstances pertaining to the borrower. Risk ratings are subject to independent review. Commercial borrowers with ratings between 1 and 5 are considered Pass credits, with 1 being most acceptable and 5 being just above the minimum level of acceptance. Commercial borrowers rated 6 have potential weaknesses which may jeopardize repayment ability. Borrowers rated 7 have a well-defined weakness or weaknesses such as the inability to demonstrate significant cash flow for debt service based on analysis of the company’s financial information. These loans remain on accrual status provided full collection of principal and interest is reasonably expected. Otherwise they are deemed impaired and placed on nonaccrual status. Borrowers rated 8 are the same as 7 rated credits with one exception: collection or liquidation in full is not probable. The following table presents total loans by risk ratings and year of origination. Loans acquired from other previously acquired institutions have been included in the table based upon the actual origination date (dollar amounts in thousands). Amortized Cost Basis by Origination Year As of December 31, 2023 Revolving 2023 2022 2021 2020 2019 Prior Revolving to Term Total Commercial/industrial Grades 1-4 $ 59,526 $ 133,469 $ 62,894 $ 54,552 $ 10,380 $ 20,575 $ 78,439 $ - $ 419,835 Grade 5 6,127 5,367 11,641 4,208 1,180 3,039 21,420 - 52,982 Grade 6 671 93 61 206 - - 627 - 1,658 Grade 7 365 271 5,756 2,351 30 1,687 3,563 - 14,023 Grade 8 - - - - - - - - - Total $ 66,689 $ 139,200 $ 80,352 $ 61,317 $ 11,590 $ 25,301 $ 104,049 $ - $ 488,498 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - owner occupied Grades 1-4 $ 55,239 $ 105,187 $ 167,124 $ 108,680 $ 47,115 $ 178,586 $ 33,220 $ - $ 695,151 Grade 5 7,586 24,734 24,890 12,955 11,168 26,179 21,519 - 129,031 Grade 6 - 1,161 1,694 110 867 6,552 699 - 11,083 Grade 7 3,143 9,988 10,061 2,313 14,775 15,777 2,655 - 58,712 Grade 8 - - - - - - - - - Total $ 65,968 $ 141,070 $ 203,769 $ 124,058 $ 73,925 $ 227,094 $ 58,093 $ - $ 893,977 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner occupied Grades 1-4 $ 54,774 $ 72,336 $ 127,450 $ 53,341 $ 45,898 $ 84,129 $ 9,870 $ - $ 447,798 Grade 5 944 4,819 2,872 3,516 97 10,081 - - 22,329 Grade 6 - - - - - - - - - Grade 7 - - 64 366 2,722 550 - - 3,702 Grade 8 - - - - - - - - - Total $ 55,718 $ 77,155 $ 130,386 $ 57,223 $ 48,717 $ 94,760 $ 9,870 $ - $ 473,829 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Multi-family Grades 1-4 $ 25,099 $ 28,144 $ 103,804 $ 74,083 $ 25,640 $ 61,589 $ 2,149 $ - $ 320,508 Grade 5 672 1,092 10,660 - - 27 - - 12,451 Grade 6 - - - - - - - - - Grade 7 - - - - - - - - - Grade 8 - - - - - - - - - Total $ 25,771 $ 29,236 $ 114,464 $ 74,083 $ 25,640 $ 61,616 $ 2,149 $ - $ 332,959 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction and development Grades 1-4 $ 65,134 $ 67,396 $ 35,017 $ 5,013 $ 1,853 $ 4,281 $ 779 $ - $ 179,473 Grade 5 11,796 1,190 6,060 743 - 84 808 - 20,681 Grade 6 - - - - - - - - - Grade 7 707 - - 172 - 790 - - 1,669 Grade 8 - - - - - - - - - Total $ 77,637 $ 68,586 $ 41,077 $ 5,928 $ 1,853 $ 5,155 $ 1,587 $ - $ 201,823 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential 1 ‑ 4 family Grades 1-4 $ 102,529 $ 199,295 $ 197,713 $ 160,489 $ 44,411 $ 77,644 $ 80,659 $ - $ 862,740 Grade 5 3,816 4,819 6,269 119 612 2,465 604 - 18,704 Grade 6 158 319 810 - - 180 249 - 1,716 Grade 7 316 366 29 1,022 400 2,947 172 - 5,252 Grade 8 - - - - - - - - - Total $ 106,819 $ 204,799 $ 204,821 $ 161,630 $ 45,423 $ 83,236 $ 81,684 $ - $ 888,412 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Grades 1-4 $ 23,711 $ 12,497 $ 6,570 $ 4,498 $ 1,194 $ 1,326 $ 925 $ - $ 50,721 Grade 5 - - - - - - - - - Grade 6 - - - - - - - - - Grade 7 - - - - - 20 - - 20 Grade 8 - - - - - - - - - Total $ 23,711 $ 12,497 $ 6,570 $ 4,498 $ 1,194 $ 1,346 $ 925 $ - $ 50,741 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ 4 $ - $ 4 Other Grades 1-4 $ 347 $ 663 $ 551 $ 1,076 $ 38 $ 9,697 $ 2,520 $ - $ 14,892 Grade 5 - - - - - - 88 - 88 Grade 6 - - - - - - - - - Grade 7 - - - - - - - - - Grade 8 - - - - - - - - - Total $ 347 $ 663 $ 551 $ 1,076 $ 38 $ 9,697 $ 2,608 $ - $ 14,980 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ 84 $ - $ 84 Total Loans $ 422,660 $ 673,206 $ 781,990 $ 489,813 $ 208,380 $ 508,205 $ 260,965 $ - $ 3,345,219 Total current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ 88 $ - $ 88 The breakdown of loans by risk rating as of December 31, 2022 is as follows (dollar amounts in thousands): Pass (1-5) 6 7 8 Total Commercial/industrial $ 474,699 $ 3,708 $ 14,156 $ — $ 492,563 Commercial real estate - owner occupied 666,424 8,031 42,946 — 717,401 Commercial real estate - non-owner occupied 386,816 — 4,317 — 391,133 Commercial real estate - multi-family 290,650 — — — 290,650 Construction and development 198,895 — 1,127 — 200,022 Residential 1 ‑ 4 family 735,971 151 3,217 — 739,339 Consumer 44,794 — 2 — 44,796 Other 18,905 — — — 18,905 $ 2,817,154 $ 11,890 $ 65,765 $ — $ 2,894,809 On January 1, 2023, the Company adopted ASU 2022-02, which eliminated the accounting guidance for TDRs by creditors and enhanced the disclosure requirements for certain loan modifications to borrowers experiencing financial difficulty. Loans that were both experiencing financial difficulty and were modified during the year ended December 31, 2023, were insignificant to these consolidated financial statements. The Company also had no new TDRs during the year ended December 31, 2022. The following tables present loans acquired with deteriorated credit quality and the change in the accretable and non-accretable components of the related discounts prior to the adoption of ASU 2016-13 (dollar amounts in thousands). December 31, 2022 Unpaid Recorded Principal Investment Balance Commercial & Industrial $ 712 $ 1,091 Commercial real estate - owner occupied 2,539 2,843 Commercial real estate - non-owner occupied — — Commercial real estate - multi-family — — Construction and development — — Residential 1 ‑ 4 family 824 1,045 Consumer — — Other — — $ 4,075 $ 4,979 The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality (dollar amounts in thousands): December 31, 2022 Accretable Non-accretable discount discount Balance at beginning of period $ 813 $ 149 Acquired balance, net 292 211 Reclassifications between accretable and non-accretable 135 (135) Accretion to loan interest income (561) — Balance at end of period $ 679 $ 225 |
Related Party Matters
Related Party Matters | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Matters | |
Related Party Matters | Note 5 Related Party Matters Directors, executive officers, and principal shareholders of the Company, including their families and firms in which they are principal owners, are considered to be related parties. Loans to officers, directors, and shareholders owning 10% or more of the Company, that we are aware of, were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and did not involve more than the normal risk of collectability or present other unfavorable features. A summary of loans to directors, executive officers, principal shareholders, and their affiliates for the years ended December 31 is as follows (dollar amounts in thousands): 2023 2022 Balances at beginning $ 70,151 $ 73,498 New loans and advances 24,495 46,528 Repayments (30,754) (49,875) Balance at end $ 63,892 $ 70,151 Deposits from directors, executive officers, principal shareholders, and their affiliates totaled approximately $19,073,000 and $27,524,000 as of December 31, 2023 and 2022, respectively. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Servicing Rights | |
Mortgage Servicing Rights | Note 6 Mortgage Servicing Rights Loans serviced for others are not included in the accompanying consolidated balance sheets. MSRs are recognized as separate assets when loans sold in the secondary market are sold with servicing retained. The Company utilizes a third-party consulting firm to determine an accurate assessment of the mortgage servicing rights fair value. The third-party firm collects relevant data points from numerous sources. Some of these data points relate directly to the pricing level or relative value of the mortgage servicing while other data points relate to the assumptions used to derive fair value. In addition, the valuation evaluates specific collateral types, and current and historical performance of the collateral in question. The valuation process focuses on the non-distressed secondary servicing market, common industry practices and current regulatory standards. The primary determinants of the fair value of mortgage servicing rights are servicing fee percentage, ancillary income, expected loan life or prepayment speeds, discount rates, costs to service, delinquency rates, foreclosure losses and recourse obligations. The valuation data also contains interest rate shock analyses for monitoring fair value changes in differing interest rate environments. Following is an analysis of activity in servicing rights assets that are measured at fair value (dollar amounts in thousands): Year Ended Year Ended December 31, 2023 December 31, 2022 Fair value at beginning of period $ 9,582 $ 5,016 Servicing asset additions 879 771 Loan payments and payoffs (1,624) (918) Changes in valuation inputs and assumptions used in the valuation model 1,140 3,012 Amount recognized through earnings 395 2,865 MSR asset acquired 3,691 1,701 Fair value at end of period $ 13,668 $ 9,582 Unpaid principal balance of loans serviced for others $ 1,175,709 $ 866,941 Mortgage servicing rights as a percent of loans serviced for others 1.16 1.11 During the years ended December 31, 2023 and 2022, the Company utilized economic assumptions in measuring the initial value of MSRs for loans sold whereby servicing is retained by the Company. The economic assumptions used at December 31, 2023 and 2022 included constant prepayment speed of 7.5 and 7.5 months and a discount rate of 10.19% and 10.21%, respectively. The constant prepayment speeds are obtained from publicly available sources for each of the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation loan programs that the Company originates under. The assumptions used by the Company are hypothetical and supported by a third-party valuation. The Company’s methodology for estimating the fair value of MSRs is highly sensitive to changes in assumptions. The carrying value of the mortgage servicing rights approximates fair market value at December 31, 2023 and 2022. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Premises and Equipment | Note 7 Premises and Equipment An analysis of premises and equipment at December 31 follows (dollar amounts in thousands): 2023 2022 Land and land improvements $ 13,594 $ 9,539 Buildings and building improvements 60,790 50,215 Furniture and equipment 7,169 6,495 Totals 81,553 66,249 Less accumulated depreciation 13,245 11,383 Right-of-use lease asset (see Note 21) 1,583 1,582 Premises and equipment, net $ 69,891 $ 56,448 Included in buildings and improvements at December 31, 2023 and 2022, is $5,743,000 and $190,000, respectively, in construction in progress. These amounts relate to branch locations which were under construction. These balances begin accumulating depreciation upon being placed in service. Depreciation and amortization of premises and equipment charged to operating expense totaled approximately $2,073,000, $1,657,000, and $1,778,000 for the years ended December 31, 2023, 2022, and 2021, respectively. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 8 Other Real Estate Owned Changes in OREO for the years ended December 31 were as follows (dollar amounts in thousands): 2023 2022 Beginning of year $ 2,520 $ 150 Transfers in 2,623 1,139 Assets Acquired 1,390 1,405 (Loss) gain on sale of OREO and valuation allowance (2,133) 146 Sales (1,827) (320) End of year $ 2,573 $ 2,520 Activity in the valuation allowance for the years ended December 31 was as follows (dollar amounts in thousands): 2023 2022 2021 Beginning of year $ — $ 187 $ 112 Additions charged to expense 1,591 24 217 Valuation relieved due to sale of OREO — (211) (142) End of year $ 1,591 $ — $ 187 |
Investment in Minority-owned Su
Investment in Minority-owned Subsidiaries | 12 Months Ended |
Dec. 31, 2023 | |
Investment in Minority-owned Subsidiaries | |
Investment in Minority-owned Subsidiaries | Note 9 Investment in Minority-owned Subsidiaries TVG, the insurance subsidiary of the Bank, maintained a 40.0% investment in Ansay at December 31, 2023 and 2022. Ansay is an independent insurance agency that has operated in southeastern Wisconsin since 1946, managing the insurance and risk needs of commercial and personal insurance clients in Wisconsin and the Midwest. As of December 31, 2023 and 2022, Ansay had total assets of $86,853,000 and $87,271,000 and liabilities of $41,398,000 and $44,178,000, respectively. The Company’s investment in Ansay, which is accounted for using the equity method, was $32,926,000 and $31,928,000 at December 31, 2023 and 2022, respectively. The Company recognized undistributed earnings of approximately $2,922,000, $2,558,000 and $2,587,000 and received dividends of $1,924,000, $1,960,000 and $1,840,000 from its investment in Ansay during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, Ansay had term loans with the Bank totaling approximately $19,731,000 and $19,838,000, respectively. Ansay also has available revolving lines of credit totaling $18,000,000 with the Company, under which there were no outstanding balances as of December 31, 2023 or 2022. Ansay maintained deposits at the Bank totaling $11,498,000 and $10,797,000 as of December 31, 2023 and 2022, respectively. The CEO of Ansay, Michael G. Ansay, served as a member of the Board of the Company until retiring on January 15, 2024. As a related party, during 2023, 2022 and 2021 the Company received insurance consulting services and purchased director and officer fidelity bond and commercial insurance coverage through Ansay spending approximately $417,000, $357,000 and $329,000, respectively. The Company’s proportionate share of earnings of Ansay flow through to its tax return. Deferred income taxes of approximately $944,000 and $1,125,000 were provided to account for the difference in the tax and book basis of assets and liabilities held at Ansay as of December 31, 2023 and 2022, respectively. The Company had a 49.8% membership interest in UFS which it sold on October 1, 2023, resulting in a $38,904,000 gain on sale. Prior to this sale, the investment was accounted for on the equity method. The Company’s undistributed earnings from its investment in UFS prior to sale were approximately $2,265,000, $3,055,000, and $2,556,000 for the years ended December 31, 2023, 2022 and 2021, respectively. Data processing service fees paid by the Company to UFS were approximately $5,545,000, $4,348,000, and $3,754,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The business operations of UFS consist of providing data processing and other information technology services to the Company and other financial institutions. As of December 31, 2022 UFS had total assets of $31,309,000 and liabilities of $6,680,000. The Company’s investment in UFS was $12,252,000 at December 31, 2022. The Company’s proportionate share of earnings of UFS flow through to its tax return. Deferred income taxes of approximately $1,509,000 were provided to account for the difference in the tax and book basis of assets and liabilities held at UFS at December 31, 2022. During 2023, 2022 and 2021, the Company received $1,747,000, $2,408,000, and $2,646,000 in dividends from UFS, respectively. |
Core Deposit Intangibles
Core Deposit Intangibles | 12 Months Ended |
Dec. 31, 2023 | |
Core Deposit Intangibles | |
Core Deposit Intangibles | Note 10 Core Deposit Intangibles The gross carrying amount and accumulated amortization of core deposit intangibles for the years ended December 31 are as follows (dollar amounts in thousands): 2023 2022 Gross Intangible Gross Intangible Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Core deposit intangible $ 40,240 $ 13,244 $ 23,979 $ 7,150 Amortization expense was $6,324,000, $2,318,000 and $1,405,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The following table shows the estimated future amortization expense of core deposit intangibles. The projections of amortization expense are based on existing asset balances as of December 31, 2023 (dollar amounts in thousands): Core Deposit Intangible 2024 $ 5,793 2025 5,003 2026 4,297 2027 3,590 2028 2,884 Thereafter 5,429 Total $ 26,996 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill | |
Goodwill | Note 11 Goodwill Goodwill was $175,106,000 and $110,206,000 at December 31, 2023 and 2022, respectively. In addition to minor refinement of goodwill during the year, $64,911,000 in goodwill originally recorded from the acquisition of Hometown was the primary cause of the increase in goodwill during 2023. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Deposits | Note 12 Deposits The composition of deposits at December 31 is as follows (dollar amounts in thousands): 2023 2022 Noninterest-bearing demand deposits $ 1,050,735 $ 934,092 Interest-bearing demand deposits 204,760 344,560 Savings deposits 1,595,395 1,357,571 Time deposits 581,283 417,285 Brokered certificates of deposit 747 6,721 Total deposits $ 3,432,920 $ 3,060,229 Time deposits of $250,000 or more were approximately $70,195,000 and $47,192,000 at December 31, 2023 and 2022, respectively. The scheduled maturities of time deposits at December 31, 2023, are summarized as follows (dollar amounts in thousands): 2024 $ 511,866 2025 47,987 2026 6,999 2027 2,560 2028 3,277 Thereafter 9,341 Total $ 582,030 |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Securities Sold Under Repurchase Agreements | |
Securities Sold Under Repurchase Agreements | Note 13 Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements have contractual maturities up to one year from the transaction date with variable and fixed rate terms. The agreements to repurchase securities require that the Company (seller) repurchase identical securities as those that are sold. The securities underlying the agreements were under the Company’s control. Information concerning securities sold under repurchase agreements at December 31 consists of the following (dollar amounts in thousands): 2023 2022 2021 Outstanding balance at the end of the year $ 75,747 $ 97,196 $ 41,122 Weighted average interest rate at the end of the year 5.31 % 4.31 % 0.02 % Average balance during the year $ 36,833 $ 25,749 $ 34,637 Average interest rate during the year 4.92 % 2.11 % 0.03 % Maximum month end balance during the year $ 75,747 $ 97,196 $ 57,915 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable | |
Notes Payable | Note 14 Notes Payable There were $35,508,000 and $1,915,000 of advances outstanding from the FHLB at December 31, 2023 and 2022, respectively. From time to time the Bank utilized short-term FHLB advances to fund liquidity during these years. The advances, rate, and maturities of FHLB advances as of December 31 were as follows: Maturity Rate 2023 2022 (dollars in thousands) Fixed rate, fixed term 06/01/2023 1.79 % — 807 Fixed rate, fixed term 11/21/2023 3.06 % — 600 Fixed rate, fixed term 03/23/2026 4.02 % 10,000 — Fixed rate, fixed term 05/26/2026 1.95 % 5,000 — Fixed rate, fixed term 03/23/2027 3.91 % 10,000 — Fixed rate, fixed term 03/23/2028 3.85 % 10,000 — Fixed rate, fixed term 04/22/2030 0.00 % 508 508 35,508 1,915 Purchase accounting adjustment (238) 14 Total notes payable $ 35,270 $ 1,929 Future maturities of borrowings were as follows (dollars in thousands): December 31, December 31, 2023 2022 1 year or less $ — $ 1,407 1 to 2 years — — 2 to 3 years 15,000 — 3 to 4 years 10,000 — 4 to 5 years 10,000 — Over 5 years 508 508 $ 35,508 $ 1,915 At December 31, 2023 and 2022, respectively, total loans available to be pledged as collateral on FHLB borrowings were approximately $1,492,916,000 and $1,152,655,000 and, of that total, $841,765,000 and $668,328,000 qualified as eligible collateral. The Bank owned $5,056,000 and $4,645,000 of FHLB stock at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the Bank had available liquidity of $806,180,000 and $666,424,000 for future draws, respectively. FHLB stock is included in other investments at December 31, 2023 and 2022. This stock is recorded at cost, which approximates fair value. The Company maintains a $7,500,000 line of credit with a commercial bank, which was entered into on May 15, 2022. There were no outstanding balances on this note at December 31, 2023 or 2022. Any future borrowings will require monthly payments of interest at a variable rate, and will be due in full on May 15, 2024. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2023 | |
Subordinated Debt | |
Subordinated Debt | Note 15 Subordinated Debt During September 2017, the Company entered into subordinated note agreements with three separate commercial banks under which it borrowed $11,500,000. These notes were all issued with 10 During July 2020, the Company entered into subordinated note agreements with two separate commercial banks. The Company had through December 31, 2020, to borrow funds up to a maximum availability of $6,000,000 under each agreement, or $12,000,000 total. These notes were issued with 10-year maturities, carry interest at a fixed rate of 5.0% through June 30, 2025, and at a variable rate thereafter, payable quarterly. These notes are callable on or after January 1, 2026 and qualify for Tier 2 capital for regulatory purposes. The Company had outstanding balances of $6,000,000 under these agreements at December 31, 2023 and 2022. During August 2022, the Company entered into subordinated note agreements with an individual. The Company had outstanding balances of $6,000,000 under these agreements as of December 31, 2023 and 2022. These notes were issued with 10-year maturities, carry interest at a fixed rate of 5.25% through August 6, 2027, and at a variable rate thereafter, payable quarterly. These notes are callable on or after August 6, 2027 and qualify for Tier 2 capital for regulatory purposes. As a result of the acquisition of Hometown during February 2023, the Company acquired all of the common securities of Hometown’s wholly-owned subsidiaries, Hometown Bancorp, Ltd. Capital Trust I (“Trust I”) and Hometown Bancorp, Ltd. Capital Trust II (“Trust II”). The Company also assumed adjustable rate junior subordinated debentures issued to these trusts. The junior subordinated debentures issued to Trust I and Trust II totaled $4,124,000 and $8,248,000, respectively, carried interest at floating rates resetting on each quarterly payment date, and were due on January 7, 2034 and December 15, 2036, respectively. Applicable discounts originally totaling $1,464,000 were recorded to carry the assumed debentures at their then estimated fair value and were being accreted to interest expense over the remaining life of the debentures. Both junior subordinated debentures were redeemable by the Company, subject to prior approval by the Federal Reserve Bank, on any quarterly payment date. The junior subordinated debentures represented the sole asset of Trust I and Trust II. The trusts were not included in the Company’s consolidated financial statements. The net effect of all agreements assumed with respect to Trust I and Trust II is that the Company, through payments on its debentures, was liable for the distributions and other payments required on the trusts’ preferred securities. Trust I and Trust II also provided the Company with $12,000,000 in Tier 1 capital for regulatory capital purposes. The Company redeemed the junior subordinated debenture related to Trust II during December 2023, resulting in Trust II’s dissolution. The Company redeemed the junior subordinated debenture related to Trust I on January 8, 2024, resulting in Trust I’s dissolution. As a result of the redemption of the junior subordinated debenture related to Trust II and notification of the Company’s intent to redeem the junior subordinated debenture of Trust I prior to December 31, 2023, the Company amortized the remaining original fair value discounts into interest expense during 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income Taxes | Note 16 Income Taxes The components of the provision for income taxes for the years ended December 31 are as follows (dollar amounts in thousands): 2023 2022 2021 Current tax expense: Federal $ 20,158 $ 10,328 $ 9,898 State 3,399 4,960 4,626 Deferred tax benefit: Federal (1,234) (617) (1) State (490) (252) — Change in valuation allowance 2,447 — — Total provision for income taxes $ 24,280 $ 14,419 $ 14,523 A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes for the years ended December 31 follows (dollar amounts in thousands): 2023 2022 2021 Tax expense at statutory rate $ 20,747 $ 12,523 $ 12,593 Increase (decrease) in taxes resulting from: Tax-exempt interest (995) (1,079) (1,074) State taxes (net of federal benefit) 2,685 3,719 3,666 Cash surrender value of life insurance (322) (194) (161) ESOP dividend (88) (77) (98) Nondeductible expenses associated with acquisition 61 189 — Change in valuation allowance 2,447 — — Other (255) (662) (403) Total provision for income taxes $ 24,280 $ 14,419 $ 14,523 Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are included in other liabilities of the balance sheet. The major components of the net deferred tax asset (liability) as of December 31 are presented below (dollar amounts in thousands): 2023 2022 Deferred tax assets: Deferred compensation $ 15 $ 43 Premises and equipment 357 439 Allowance for credit losses 12,856 6,178 Accrued vacation and severance 80 6 Other real estate owned 262 — Purchase accounting 3,855 2,152 Unrealized loss on securities available for sale 3,375 5,757 Net operating loss carry forward 592 — Other 494 1,384 Total deferred tax assets 21,886 15,959 Deferred tax liabilities: Investment in acquisition and discount accretion (1,557) (624) Mortgage servicing rights (3,703) (2,610) Other investments (101) (84) Prepaid expenses — — Investment in minority owned subsidiaries (944) (2,635) Goodwill and other intangibles (6,591) (5,341) Total deferred tax liabilities (12,896) (11,294) Valuation allowance (2,447) — Net deferred tax asset (liability) $ 6,543 $ 4,665 In assessing the ability of the Company to realize the benefit of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, availability of operating loss carrybacks, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods which deferred tax assets are deductible, management believes it is more likely than not the Company will generate sufficient federally taxable income to realize the benefits of these deductible differences at December 31, 2023. Due to legislation during 2023 related to exempting interest income on significant portions of the Company’s loan portfolio to taxability in the state of Wisconsin, however, management estimates that future state taxable income will be insufficient to fully realize the benefits of these deductible differences, resulting in a valuation allowance of $2,447,000 on the net deferred tax asset related to state income taxes at December 31, 2023. Tax effects from an uncertain tax position can be recognized in the financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. When applicable, interest and penalties on uncertain tax positions are calculated based on the guidance from the relevant tax authority and included in income tax expense. At December 31, 2023 and 2022, there was no liability for uncertain tax positions. Federal income tax returns for 4 years ended December 31, 2020 through 2023 remain open and subject to review by applicable tax authorities. State income tax returns for 5 years ended December 31, 2019 through 2023 remain open and subject to review by applicable tax authorities. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 17 Employee Benefit Plans Employee Stock Ownership Plan The Company has a defined contribution profit sharing 401(k) plan which includes the provisions for an employee stock ownership plan (“ESOP”). The plan is available to all employees over 18 years of age after completion of three months of service. Employees participating in the plan may elect to defer a minimum of 2% of compensation up to the limits specified by law. All participants of the 401(k) plan are eligible for the ESOP and may allocate their contributions to purchase shares of the Company’s stock. As of December 31, 2023 and 2022, the plan held 272,132 and 322,020 shares, respectively. These shares are included in the calculation of the Company’s earnings per share. The Company may make discretionary contributions up to the limits established by IRS regulations. The discretionary match was 35% of participant contributions up to 10% of the employee’s salary in 2023, 2022, and 2021. The Company made additional discretionary contributions to the plan of $801,000, $591,000, $600,000 in 2023, 2022 and 2021, respectively. Total expense associated with the plans was approximately $1,596,000, $1,197,000 and $1,169,000 in 2023, 2022 and 2021, respectively. Share-based Compensation The Company has made restricted share grants during 2023, 2022 and 2021 pursuant to the Bank First Corporation 2020 Equity Plan. The purpose of the Plan is to provide financial incentives for selected employees and for the non-employee Directors of the Company, thereby promoting the long-term growth and financial success of the Company. The Company stock to be offered under the Plan pursuant to Stock Appreciation Rights, performance unit awards, and restricted stock and unrestricted Company stock awards must be Company stock previously issued and outstanding and reacquired by the Company. The number of shares of Company stock that may be issued pursuant to awards under the 2020 Plan shall not exceed, in the aggregate, 700,000. As of December 31, 2023, 76,373 shares of Company stock has been awarded under the 2020 Plan. Compensation expense for restricted stock is based on the fair value of the awards of Bank First Corporation common stock at the time of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting periods of the respective grants. For the years ended December 31, 2023, 2022 and 2021, compensation expense of $2,142,000, $1,662,000 and $1,393,000, respectively, was recognized related to restricted stock awards. As of December 31, 2023, there was $1,993,000 of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted average period of 1.33 years. The aggregate grant date fair value of restricted stock awards that vested during 2023 was approximately $1,655,000. For the year ended For the year ended December 31, 2023 December 31, 2022 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 59,272 $ 65.85 58,611 $ 61.44 Granted 25,506 80.15 25,451 69.73 Vested (25,762) 64.25 (20,785) 60.52 Forfeited or cancelled (820) 67.02 (4,005) 60.50 Outstanding at end of year 58,196 $ 72.28 59,272 $ 65.85 Deferred Compensation Plan The Company has a deferred compensation agreement with one of its former executive officers. The benefits were payable beginning June 30, 2009, the date of termination of employment with the Company via retirement. The estimated annual cash benefit payment upon retirement at the age of 70 under the salary continuation plan is $108,011. The payoff is for the participant’s lifetime and is guaranteed to the participant or their surviving beneficiary for a minimum of 15 years. Related expense for this agreement was approximately $5,000, $10,000, and $15,000 for the years ended December 31, 2023, 2022 and 2021, respectively. The vested present value of future payments of approximately $53,000 and $156,000 at December 31, 2023 and 2022, respectively, is included in other liabilities. During 2023 and 2022 the discount rate used to present value the future payments of this obligation was 4.95%. |
Stockholders' Equity and Regula
Stockholders' Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity and Regulatory Matters | |
Stockholders' Equity and Regulatory Matters | Note 18 Stockholders’ Equity and Regulatory Matters The Bank, as a national bank, is subject to the dividend restrictions set forth by the Office of the Comptroller of the Currency. Under such restrictions, the Bank may not, without the prior approval of the Office of the Comptroller of the Currency, declare dividends in excess of the sum of the current year’s earnings (as defined) plus the retained earnings (as defined) from the prior two years. The dividends that the Bank could declare without the prior approval of the Office of the Comptroller of the Currency as of December 31, 2023 totaled approximately $128,790,000. The payment of dividends may be further limited because of the need for the Bank to maintain capital ratios satisfactory to applicable regulatory agencies. Banks and certain bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under regulatory guidance for non-advanced approaches institutions, the Bank and Company are required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets, including an additional conservation buffer determined by banking regulators. As of December 31, 2023 and 2022, this buffer was 2.50%. As of December 31, 2023 and 2022, the Bank and Company met all capital adequacy requirements to which they are subject. Actual and required capital amounts and ratios are presented below (dollar amounts in thousands): To Be Well Minimum Capital Capitalized Under For Capital Adequacy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital (to risk-weighted assets): Company $ 484,398 13.99 % $ 276,904 8.00 % $ 363,437 10.50 % NA NA Bank $ 446,634 12.91 % $ 276,726 8.00 % $ 363,202 10.50 % $ 345,907 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 437,979 12.65 % $ 207,678 6.00 % $ 294,211 8.50 % NA NA Bank $ 412,215 11.92 % $ 207,544 6.00 % $ 294,021 8.50 % $ 276,726 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 433,979 12.54 % $ 155,759 4.50 % $ 242,291 7.00 % NA NA Bank $ 412,215 11.92 % $ 155,658 4.50 % $ 242,135 7.00 % $ 224,840 6.50 % Tier 1 capital (to average assets): Company $ 437,979 11.05 % $ 158,581 4.00 % $ 158,581 4.00 % NA NA Bank $ 412,215 10.40 % $ 158,585 4.00 % $ 158,585 4.00 % $ 198,231 5.00 % To Be Well Minimum Capital Capitalized Under For Capital Adequacy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total capital (to risk-weighted assets): Company $ 387,814 12.23 % $ 253,689 8.00 % $ 332,967 10.50 % NA NA Bank $ 372,312 11.75 % $ 253,504 8.00 % $ 332,724 10.50 % $ 316,880 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 341,634 10.77 % $ 190,627 6.00 % $ 269,545 8.50 % NA NA Bank $ 349,632 11.03 % $ 190,128 6.00 % $ 269,348 8.50 % $ 253,504 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 341,634 10.77 % $ 142,700 4.50 % $ 221,978 7.00 % NA NA Bank $ 349,632 11.03 % $ 142,596 4.50 % $ 221,816 7.00 % $ 205,972 6.50 % Tier 1 capital (to average assets): Company $ 341,634 9.69 % $ 140,992 4.00 % $ 140,992 4.00 % NA NA Bank $ 349,632 9.93 % $ 140,887 4.00 % $ 140,887 4.00 % $ 176,108 5.00 % |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Information | |
Segment Information | Note 19 Segment Information The Company, through the branch network of its subsidiary, the Bank, provides a full range of consumer and commercial financial institution services to individuals and businesses in Wisconsin. These services include credit cards; secured and unsecured consumer, commercial, and real estate loans; demand, time, and savings deposits; and ATM processing. The Company also offers a full-line of insurance services through its equity investment in Ansay. While the Company’s chief decision makers monitor the revenue streams of various Company products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the Company’s financial institution operations are considered by management to be aggregated in one reportable operating segment. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 20 Commitments and Contingencies The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements and for fixed rate commitments also considers the difference between current levels of interest rates and committed rates. The notional amount of rate lock commitments at December 31, 2023 and 2022, respectively, was $5,854,000 and $3,736,000. The Bank is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss is represented by the contractual or notional amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on-balance-sheet instruments. Since some of the commitments are expected to expire without being drawn upon and some of the commitments may not be drawn upon to the total extent of the commitment, the notional amount of these commitments does not necessarily represent future cash requirements. The following commitments were outstanding at December 31 (dollar amounts in thousands): Notional Amount December 31, 2023 December 31, 2022 Commitments to extend credit: Fixed $ 92,113 $ 120,906 Variable 707,285 539,658 Credit card arrangements 21,213 17,364 Letters of credit 9,785 10,343 Commitments to extend credit are agreements to lend to a customer at fixed or variable rates as long as there is no violation of any condition established in the contract. Commitments have fixed expiration dates or other termination clauses and may require payment of a fee. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable; inventory; property, plant, and equipment; real estate; and stocks and bonds. Letters of credit include $9,785,000 of standby letters of credit and no direct pay letters of credit. Standby letters of credit are conditional lending commitments issued by the Company to guaranty the performance of a customer to a third party. Direct pay letters of credit generally are issued to support the marketing of industrial development revenue and housing bonds and provide that all debt service payments will be paid by drawing on the letter of credit. The letter of credit draws are then repaid by draws from the customer’s bank account. Generally, all standby letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting these commitments. The majority of the Company’s loans, commitments, and letters of credit have been granted to customers in the Company’s market area. The concentrations of credit by type are set forth in Note 4. Standby letters of credit were granted primarily to commercial borrowers. Management believes the diversity of the local economy will prevent significant losses in the event of an economic downturn. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | Note 21 Leases In accordance with GAAP, leases where the Company is the lessee are recognized on-balance sheet through a right-of-use (“ROU”) model that requires recognition of a ROU lease asset and liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company leases certain properties under operating leases that resulted in the recognition of ROU lease assets of approximately $1,583,000 and $1,582,000 and corresponding lease liabilities of similar value on the Company’s Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively. GAAP provides a number of optional practical expedients in transition. The Company has elected the “ package hindsight expedient Lessee Leases The Company’s lessee leases are operating leases, and consist of leased real estate for branches. Options to extend and renew leases are generally exercised under normal circumstances. Advance notification is required prior to termination, and any noticing period is often limited to the months prior to renewal. Rent escalations are generally specified by a payment schedule, or are subject to a defined formula. The Company also elected the practical expedient to not separate lease and non-lease components for all leases, the majority of which consist of real estate common area maintenance expenses. Generally, leases do not include guaranteed residual values, but instead typically specify that the leased premises are to be returned in satisfactory condition with the Company liable for damages. For operating leases, the lease liability and ROU asset (before adjustments) are recorded at the present value of future lease payments. The Company is electing to utilize the Wall Street Journal Prime Rate on the date of lease commencement as the lease interest rate. Year Ended (dollars in thousands) December 31, 2023 December 31, 2022 Amortization of ROU Assets - Operating Leases $ (2) $ (1) Interest on Lease Liabilities - Operating Leases 87 96 Operating Lease Cost (Cost resulting from lease payments) 85 95 Weighted Average Lease Term (Years) - Operating Leases 30.00 31.00 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities is as follows (dollar amounts in thousands): December 31, 2023 Operating lease payments due: Within one year $ 85 After one but within two years 86 After two but within three years 94 After three but within four years 94 After four years but within five years 94 After five years 3,043 Total undiscounted cash flows 3,496 Discount on cash flows (1,913) Total operating lease liabilities $ 1,583 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | Note 22 Fair Value of Financial Instruments Accounting guidance establishes a fair value hierarchy to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Level 1: Quoted prices (unadjusted) or identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Information regarding the fair value of assets measured at fair value on a recurring basis is as follows (dollar amounts in thousands): Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2023 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 28,294 $ — $ 28,294 $ — Obligations of states and political subdivisions 58,246 — 58,246 — Mortgage-backed securities 36,130 — 36,130 — Corporate notes 19,038 — 19,038 — Certificates of deposit 489 — 489 — Mortgage servicing rights 13,668 — 13,668 — December 31, 2022 Assets Securities available for sale U.S. Treasury securities $ 142,097 $ — $ 142,097 $ — Obligations of U.S. Government sponsored agencies 21,749 — 21,749 — Obligations of states and political subdivisions 83,186 — 83,186 — Mortgage-backed securities 36,637 — 36,637 — Corporate notes 19,994 — 19,994 — Certificates of deposit 974 — 974 — Mortgage servicing rights 9,582 — 9,582 — There were no assets measured on a recurring basis using significant unobservable inputs (Level 3) during these periods. Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows (dollar amounts in thousands): Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2023 OREO $ 2,573 $ — $ — $ 2,573 Loans individually evaluated, net of reserve 9,242 — — 9,242 $ 11,815 $ — $ — $ 11,815 December 31, 2022 OREO $ 2,520 $ — $ — $ 2,520 Impaired Loans, net of impairment reserve 3,478 — — 3,478 $ 5,998 $ — $ — $ 5,998 The following is a description of the valuation methodologies used by the Company for the items noted in the table above, including the general classification of such instruments in the fair value hierarchy. For individually evaluated impaired loans, the amount of impairment is based upon the present value of expected future cash flows discounted at the loan’s effective interest rate, the estimated fair value of the underlying collateral for collateral-dependent loans, or the estimated liquidity of the note. For OREO, the fair value is based upon the estimated fair value of the underlying collateral adjusted for the expected costs to sell. The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets: Weighted Unobservable Range of Average Valuation Technique Inputs Discounts Discount As of December 31, 2023 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 3% - 71 % 38 % Loans individually evaluated Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 53 % 31 % As of December 31, 2022 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0 % 0 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 71 % 26 % The carrying value and estimated fair value of financial instruments at December 31 follows (dollar amounts in thousands): Carrying December 31, 2023 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 247,468 $ 247,468 $ — $ — $ 247,468 Securities held to maturity 103,324 99,475 4,151 — 103,626 Loans held for sale 3,012 — — 3,012 3,012 Loans, net 3,299,365 — — 3,168,749 3,168,749 Other investments 21,366 — — 21,366 21,366 Mortgage servicing rights 13,668 — 13,668 — 13,668 Financial liabilities: Deposits $ 3,432,920 $ — $ — $ 3,153,512 $ 3,153,512 Securities sold under repurchase agreements 75,747 — 75,747 — 75,747 Notes payable 35,270 — 35,270 — 35,270 Subordinated notes 12,000 — 12,000 — 12,000 Junior subordinated debentures 4,124 — 4,124 — 4,124 Carrying December 31, 2022 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 119,351 $ 119,351 $ — $ — $ 119,351 Securities held to maturity 45,097 38,577 5,193 — 43,770 Loans held for sale 648 — — 648 648 Loans, net 2,871,298 — — 2,832,454 2,832,454 Other investments 16,495 — — 16,495 16,495 Mortgage servicing rights 9,582 — 9,582 — 9,582 Financial liabilities: Deposits $ 3,060,229 — — 2,732,007 2,732,007 Securities sold under repurchase agreements 97,196 — 97,196 — 97,196 Notes payable 1,929 — 1,929 — 1,929 Subordinated notes 23,500 — 23,500 — 23,500 The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Consequently, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters that could affect the estimates. Fair value estimates are based on existing on- and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Deposits with no stated maturities are defined as having a fair value equivalent to the amount payable on demand. This prohibits adjusting fair value derived from retaining those deposits for an expected future period of time. This component, commonly referred to as a deposit base intangible, is neither considered in the above amounts nor is it recorded as an intangible asset on the consolidated balance sheet. Significant assets and liabilities that are not considered financial assets and liabilities include premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Parent Company Only Financial Statements | |
Parent Company Only Financial Statements | Note 23 Parent Company Only Financial Statements Balance Sheets December 31 2023 2022 (In Thousands) Assets Cash and cash equivalents $ 37,360 $ 14,760 Securities 1,935 1,851 Investment in Bank 598,033 461,101 Investment in Veritas (Dissolved during 2023) — 39 Other assets 272 462 TOTAL ASSETS $ 637,600 $ 478,213 Liabilities and Stockholders’ Equity Liabilities Subordinated notes $ 12,000 $ 23,500 Junior subordinated notes 4,124 — Other liabilities 1,678 1,610 Total liabilities 17,802 25,110 Stockholders’ equity: Common stock 115 101 Additional paid-in capital 333,815 218,263 Retained earnings 348,001 295,496 Treasury stock, at cost (53,387) (45,191) Accumulated other comprehensive income (loss) (8,746) (15,566) Total stockholders’ equity 619,798 453,103 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 637,600 $ 478,213 Statements of Income Years Ended December 31 2023 2022 2021 (In Thousands) Income: Dividends received from Bank $ 68,573 $ 22,281 $ 22,361 Equity in undistributed earnings of subsidiaries 10,271 25,258 24,687 Other income — 9 — Total income 78,844 47,548 47,048 Other expenses 5,951 3,204 2,205 Benefit for income taxes (1,621) (870) (601) Net income $ 74,514 $ 45,214 $ 45,444 Statements of Cash Flows Years Ended December 31, 2023 2022 2021 (In thousands) Cash flow from operating activities: Net income $ 74,514 $ 45,214 $ 45,444 Adjustments to reconcile net income to net cash used in operating activities: Stock compensation 2,142 1,662 1,393 Equity in earnings of subsidiaries (includes dividends) (78,844) (47,539) (47,048) Changes in other assets and liabilities: Other assets 403 (772) 1 Other liabilities (623) (2,054) (660) Net cash used in operating activities (2,408) (3,489) (870) Cash flows from investing activities, net of effects of business combination: Dividends received from Bank 69,982 22,355 22,360 Dividends received from Veritas 37 — — Net cash used in business combination (4,554) 5,159 — Proceeds from other investments 248 — — Net cash provided by investing activities 65,713 27,514 22,360 Cash flows from financing activities, net of effects of business combination: Repayment of junior subordinated debentures (8,248) — — Repayment of subordinate notes (11,500) — — Proceeds from subordinated notes — 6,000 — Cash dividends paid (11,106) (7,248) (8,733) Issuance of common stock 195 114 114 Repurchase of common stock (10,046) (14,314) (8,272) Net cash used in financing activities (40,705) (15,448) (16,891) Net increase in cash and cash equivalents 22,600 8,577 4,599 Cash and cash equivalents at beginning 14,760 6,183 1,584 Cash and cash equivalents at end $ 37,360 $ 14,760 $ 6,183 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Common Share | |
Earnings Per Common Share | Note 24 Earnings Per Common Share See Note 1 for the Company’s accounting policy regarding per share computations. Earnings per common share, earnings per share assuming dilution, and related information are summarized as follows: Years ended December 31, (in thousands, except per share data) 2023 2022 2021 Basic Net income available to common shareholders $ 74,514 $ 45,214 $ 45,444 Less: Earnings allocated to participating securities (425) $ (330) $ (351) Net income allocated to common shareholders $ 74,089 $ 44,884 $ 45,093 Weighted average common shares outstanding including participating securities 10,231,569 8,104,117 7,680,896 Less: Participating securities (58,359) (59,211) (59,264) Average shares 10,173,210 8,044,906 7,621,632 Basic earnings per common shares $ 7.28 $ 5.58 $ 5.92 Diluted Net income available to common shareholders $ 74,514 $ 45,214 $ 45,444 Weighted average common shares outstanding for basic earnings per common share 10,173,210 8,044,906 7,621,632 Add: Dilutive effects of stock based compensation awards 25,783 24,354 21,535 Average shares and dilutive potential common shares 10,198,993 8,069,260 7,643,167 Diluted earnings per common share $ 7.28 $ 5.58 $ 5.92 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Veritas Asset Holdings, LLC (“Veritas”) and Bank First, National Association (“Bank”). Veritas was dissolved by the Company during the year ended December 31, 2023. The Bank’s wholly owned subsidiaries are Bank First Investments, Inc., TVG Holdings, Inc. (“TVG") and BFC Title LLC. All significant intercompany balances and transactions have been eliminated. The Bank and TVG have investments in minority-owned subsidiaries that are accounted for using the equity method in the consolidated financial statements. The Bank owned 49.8% of UFS, which provides data processing solutions to over 60 banks in the Midwest, through October 1, 2023. On that date it sold 100% of its member interest in UFS to a third party. TVG owns 40.0% of Ansay providing clients throughout the Midwest with superior insurance and risk management solutions. |
Organization | Organization The Company provides a variety of financial services to individual and business customers, primarily located in Wisconsin, through the Bank. The Bank is subject to competition from other traditional and nontraditional financial institutions and is also subject to the regulations of certain federal agencies and undergoes periodic examinations by those regulatory authorities including the Office of the Comptroller of the Currency and the Federal Reserve Bank. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of the accompanying consolidated financial statements in conformity with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates. The allowance for credit losses, carrying value of real estate owned, carrying value of goodwill, fair value of mortgage servicing rights, and fair values of financial instruments are inherently subjective and are susceptible to significant change. |
Business Combinations | Business Combinations The Company accounts for business combinations under the acquisition method of accounting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations. The Company recognizes the full fair value of the assets acquired and liabilities assumed and immediately expenses transaction costs. If the amount of consideration exceeds the fair value of assets purchased less the fair value of liabilities assumed, goodwill is recorded. Alternatively, if the amount by which the fair value of assets purchased exceeds the fair value of liabilities assumed and consideration paid, a gain (bargain purchase gain) is recorded. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Results of operations of the acquired business are included in the statement of income from the effective date of the acquisition. Additional information regarding acquisitions is provided in Note 2. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows in the consolidated financial statements, cash and cash equivalents include cash on hand, interest-bearing and noninterest-bearing accounts in other financial institutions, and federal funds sold, all of which have original maturities of three months or less. Generally, federal funds are purchased and sold for one day periods. In the normal course of business, the Company maintains cash and due from bank balances with correspondent banks. Accounts at each institution that are insured by the Federal Deposit Insurance Corporation have up to $250,000 of insurance. Total uninsured balances held at December 31, 2023 and 2022 were approximately $3,100,000 and $2,900,000, respectively. |
Securities | Securities Securities are classified as held to maturity (“HTM”) or available for sale (“AFS”) at the time of purchase. Investment securities classified as HTM, which management has the intent and ability to hold to maturity, are reported at amortized cost. Investment securities classified as AFS, which management has the intent and ability to hold for an indefinite period of time, but not necessarily to maturity, are carried at fair value, with unrealized gains and losses, net of related deferred income taxes, included in stockholders’ equity as a separate component of other comprehensive income. The net carrying value of debt securities classified as HTM or AFS is adjusted for amortization of premiums and accretion of discounts utilizing the effective interest method over the expected estimated maturity. Such amortization and accretion is included as an adjustment to interest income from securities. Interest and dividends are included in interest income from securities. Transfers of debt securities into the HTM classification from the AFS classification are made at fair value as of the date of transfer. The unrealized holding gain or loss as of the date of transfer is retained in other comprehensive income and in the carrying value of the HTM securities, establishing the amortized cost of the security. These unrealized holding gains and losses as of the date of transfer are amortized or accreted over the remaining life of the security. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. Prior to January 1, 2023, unrealized gains or losses considered temporary and the noncredit portion of unrealized losses deemed other-that-temporary were reported as an increase or decrease in accumulated other comprehensive income. The credit related portion of unrealized losses deemed other-than-temporary were recorded in current period earnings. Subsequent to January 1, 2023, as a result of adopting ASU 2016-13, Financial Instruments – Credit Losses |
Other Investments | Other Investments Other investments are carried at cost, or, where available, recently observable market prices, which approximates fair value, and consist of FHLB stock, FRB stock and Bankers’ Bancorporation stock. Other investments are evaluated for impairment at least on an annual basis. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market, consisting of the current origination of certain fixed-rate mortgage loans, are carried at the lower of cost or estimated fair value in the aggregate. A gain or loss is recognized at the time of the sale reflecting the present value of the difference between the contractual interest rate of the loans sold and the yield to the investor, adjusted for the initial value of mortgage servicing rights associated with loans sold with servicing retained. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. |
Loans and Related Interest Income | Loans and Related Interest Income - Originated Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are carried at their amortized cost basis, which is the unpaid principal balance outstanding, net of deferred loan fees and costs and any direct principal charge-offs. Interest income is accrued on the unpaid principal balance using the simple interest method. The accrual of interest income on loans is discontinued when, in the opinion of management, there is reasonable doubt as to the borrower’s ability to meet payment of interest or principal when due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal, though they may be placed in such status earlier. Loans past due 90 days or more may continue on accrual only when they are well secured and/or in process of collection or renewal. When interest accrual is discontinued, all previously accrued but uncollected interest is reversed against current period interest income. Except in very limited circumstances, cash collections on nonaccrual loans are credited to the loan receivable balance and no interest income is recognized on those loans until the principal balance is paid in full. Accrual of interest may be resumed when the customer is current on all principal and interest payments and has been paying on a timely basis for a sustained period of time. A description of each segment of the loan portfolio, including the corresponding credit risk, is included below: Commercial / Industrial Commercial Real Estate – Owner Occupied and Non-owner Occupied Multi-Family Construction and Development Residential 1-4 Family Consumer Other Loans and Related Interest Income - Acquired Loans purchased in acquisition transactions are acquired loans, and are recorded at their fair value at the acquisition date. Prior to January 1, 2023, the Company initially classified acquired loans as either purchased credit impaired (“PCI”) loans (i.e., loans that reflect credit deterioration since origination and it is probable at acquisition that the Company will be unable to collect all contractually required payments) or purchased non-impaired loans (i.e., performing acquired loans). The Company estimated the fair value of PCI loans based on the amount and timing of expected principal, interest and other cash flows for each loan. The excess of the loan’s contractual principal and interest payments over all cash flows expected to be collected at acquisition was considered an amount that should not be accreted. These credit discounts (“nonaccretable marks”) were included in the determination of the initial fair value for acquired loans; therefore, no allowance for credit losses was recorded at the acquisition date. Differences between the estimated fair values and expected cash flows of acquired loans at the acquisition date that were not credit-based (“accretable marks”) were subsequently accreted to interest income over the estimated life of the loans. Subsequent to the acquisition date for PCI loans, increases in cash flows over those expected at the acquisition date resulted in a move of the discount from nonaccretable to accretable, while decreases in expected cash flows after the acquisition date were recognized through the provision for credit losses. Subsequent to January 1, 2023, as a result of adopting ASU 2016-13, acquired loans that have evidence of more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At acquisition, an estimate of expected credit losses is made for PCD loans. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair value to establish the initial cost basis of the PCD loans. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors, resulting in a discount or premium that is accreted or amortized to interest income. For acquired loans not deemed PCD loans at acquisition, the difference between the initial fair value mark and the unpaid principal balance is recognized in interest income over the estimated life of the loans. In addition, an initial allowance for expected credit losses is estimated and recorded as provision expense at the acquisition date. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans The ACL – Loans represents management’s estimate of expected credit losses in the Company’s loan portfolio at the balance sheet date. The Company estimates the ACL – Loans based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL – Loans. Estimating the amount of the ACL – Loans is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change. We establish the ACL – Loans through charges to earnings, which are shown in the statements of income as the provision for credit losses. Specifically identifiable and quantifiable known losses are promptly charged off against the allowance. Prior to January 1, 2023, the Company used an incurred loss impairment model. This methodology assessed the overall appropriateness of the allowance for credit losses and included allocations for specifically impaired loans and loss factors for all remaining loans, with a component primarily based on historical loss rates and another component primarily based on other qualitative factors. Impaired loans were individually assessed and measured based on the present value of expected future cash flows discounted at the loan’s effective price or the fair value of the collateral if the loan was collateral dependent. Loans that were determined not to be impaired were collectively evaluated for impairment, stratified by type and allocated loss ranges based on the Company’s actual historical loss ratios for each strata, and adjustments were also provided for certain environmental and other qualitative factors. Subsequent to January 1, 2023, as a result of adopting ASU 2016-13, the Company uses a current expected loss model (“CECL”). This methodology also considers historical loss rates and other qualitative adjustments, as well as a new forward-looking component that considers reasonable and supportable forecasts over the expected life of each loan. To develop the ACL – Loans estimate under CECL, the Company segments the loan portfolio into loan pools based on loan type and similar credit risk elements; calculates the historical loss rates for the segmented loan pools; applies the loss rates over the calculated life of the pooled loans; adjusts the forecasted macro-level economic conditions; and determines qualitative adjustments based on factors and conditions unique to the Company’s portfolio. The Company further individually evaluates PCD loans and other loans that no longer share similar risk characteristics with the collectively evaluated pools based on the amount and timing of estimated future cash flows or collateral values and establishes specific reserves when these estimated future cash flows or collateral values do not justify the carrying value of the loan. Management believes that the ACL - Loans is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the ACL - Loans. Such agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of their examination. |
Allowance for Credit Losses - Unfunded Commitments | Allowance for Credit Losses – Unfunded Commitments In addition to the ACL – Loans, the Company has established an allowance for unfunded commitments, included in other liabilities on the consolidated balance sheets, representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. The ACL – Unfunded Commitments is maintained at a level that management believes is sufficient to absorb losses arising from unfunded loan commitments, and is determined quarterly based on methodology similar to the methodology for determining the ACL – Loans. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets. Premises and equipment acquired in corporate acquisitions are recorded at estimated fair value on the date of acquisition. Maintenance and repair costs are charged to expense as incurred. Gains or losses on disposition of premises and equipment are reflected in income. Premises and equipment, and other long-term assets, are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Depreciation expense is computed using the straight-line method over the following estimated useful lives. Buildings and improvements 40 years Land improvements 20 years Furniture, fixtures and equipment 2 - 7 years |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure as well as buildings that the Company no longer utilizes in its operations are held for sale and are initially recorded at fair value at the date of foreclosure or abandonment less estimated costs to sell the asset, establishing a new cost basis. Any write downs at the time of foreclosure are charged to the allowance for credit loss. OREO properties acquired in conjunction with corporate acquisitions are recorded at fair value on the date of acquisition. Subsequent to foreclosure, valuations are periodically performed by management, and a valuation allowance is established if fair value declines below carrying value. Costs relating to the development and improvement of the property are capitalized. Revenue and expenses from operations and changes in the valuation allowance are included in other expenses. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consist of the value of core deposits, mortgage servicing assets and the excess of purchase price over fair value of net assets (goodwill). See Note 2 for additional information on acquisitions completed in 2023 and 2022. The value of core deposits are typically recorded in connection with a whole bank or branch acquisition. The value of the core deposit intangible represents the estimated value of the long-term deposit relationships acquired in the transaction. Determining the value of cored deposits and their average lives involves multiple assumptions and estimates and is typically determined by performing a discounted cash flow analysis, which involves a combination of any or all of the following assumptions: customer attrition/runoff, alternative funding costs, deposit servicing costs, and discount rates. The value of core deposits are stated at cost less accumulated amortization and are amortized on a sum of the year’s digits basis over a period of one to ten years. Mortgage servicing rights are recognized as separate assets when rights are acquired through purchase or through sale of mortgage loans with servicing retained. Servicing rights acquired through sale of financial assets are recorded based on the fair value of the servicing right. The determination of fair value is based on a valuation model and includes stratifying the mortgage servicing rights by predominant characteristics, such as interest rates and terms, and estimating the fair value of each stratum based on the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as costs to service, a discount rate, and prepayment speeds. Changes in fair value are recorded as an adjustment to earnings. The Company performs a “qualitative” assessment of goodwill to determine whether further impairment testing of indefinite-lived intangible assets is necessary on at least an annual basis. If it is determined, as a result of performing a qualitative assessment over goodwill, that it is more likely than not that goodwill is impaired, management will perform an impairment test to determine if the carrying value of goodwill is realizable. The Company evaluated goodwill and core deposit intangibles for impairment during 2023, 2022 and 2021, determining that there was no goodwill or core deposit intangible impairment. |
Income Taxes | Income Taxes The Company files one consolidated federal income tax return and four state returns. Federal income tax expense is allocated to each subsidiary based on an intercompany tax sharing agreement. Deferred tax assets and liabilities have been determined using the liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities and the current enacted tax rates which will be in effect when these differences are expected to reverse. Provision (benefit) for deferred taxes is the result of changes in the deferred tax assets and liabilities. |
Treasury Stock | Treasury Stock Common stock shares repurchased by the Company are recorded as treasury stock at cost. |
Securities Sold Under Repurchase Agreements | Securities Sold Under Repurchase Agreements The Company sells securities under repurchase agreements. These transactions are accounted for as collateralized financing transactions and are recorded at the amounts at which the securities were sold. The Company may have to provide additional collateral to the counterparty, as necessary. |
Off-Balance-Sheet Financial Instruments | Off-Balance-Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments including commitments to extend credit, unfunded commitments under lines of credit, and letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded. |
Advertising | Advertising Advertising costs are generally expensed as incurred. |
Per Share Computations | Per Share Computations Weighted average shares outstanding were 10,231,569, 8,104,117, and 7,680,896 for the years ended December 31, 2023, 2022 and 2021, respectively. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for basic and diluted earnings per share calculations. There were 58,359, 59,211, and 59,264 average shares of dilutive instruments outstanding during the years ended December 31, 2023, 2022, and 2021. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that there are any such matters that will have a material effect on the consolidated financial statements at December 31, 2023 and 2022. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Bank, the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. |
Comprehensive Income | Comprehensive Income GAAP normally requires that recognized revenues, expenses, gains and losses be included in net income. In addition to net income, another component of comprehensive income includes the after-tax effect of changes in unrealized gains and losses on available for sale securities. This item is reported as a separate component of stockholders’ equity. The Company presents comprehensive income in the statement of comprehensive income. |
Stock-based Compensation | Stock-based Compensation The Company uses the fair value method of recognizing expense for stock-based compensation based on the fair value of restricted stock awards at the date of grant as prescribed by accounting standards codification Topic 781-10 Compensation/Stock Compensation. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives Commitments to fund mortgage loans, at a set interest rate, (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free-standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Bank enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into in order to hedge the change in interest rates resulting from its commitments to fund loans. The forward commitments for the future delivery of mortgage loans are based on the Bank’s “best efforts” and therefore the Bank is not penalized if a loan is not delivered to the investor if the loan did not get originated. Changes in the fair values of these derivatives generally offset each other and are included in “other income” in the consolidated statements of income. |
Reclassifications | Reclassifications Certain 2022 and 2021 amounts have been reclassified to conform to the presentation used in 2023. These reclassifications had no effect on the operations, financial condition or cash flows of the Company. |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements. |
Recently Implemented Accounting Standards | Recently Implemented Accounting Standards As a result of implementing ASU 2016-13 on January 1, 2023, the Company recorded a reduction to retained earnings of approximately $10,050,000. The transition adjustment included an increase to the ACL-Loans of $10,972,000 and an increase in the ACL – Unfunded Commitments of $3,264,000, offset by applicable deferred taxes. The Company adopted ASU 2016-13 using the prospective transition approach for financial assets considered PCD that were previously classified as PCI. The amortized cost of the PCD assets were adjusted to reflect the addition of $0.3 million to the allowance for credit losses. The remaining noncredit discount (based on the adjusted amortized cost) will be accreted into interest income at the effective interest rate over the remaining life of the assets. The following table presents the changes in the allowance for credit losses required as a result of this adoption: January 1, 2023 As December 31, 2022 Reported After ASU Pre-ASU 2016-13 Impact of Allowance for Credit Losses 2016-13 Adoption Adoption 2016-13 Adoption Assets Loans held for investments Commercial/industrial $ 5,930 $ 4,071 $ 1,859 Commercial real estate - owner occupied 7,186 5,204 1,982 Commercial real estate - non-owner occupied 3,805 2,644 1,161 Commercial real estate - multi-family 3,514 2,761 753 Construction and development 3,655 1,592 2,063 Residential 1-4 family 8,511 5,944 2,567 Consumer 934 314 620 Other 117 150 (33) Loans held for investments, total 33,652 22,680 10,972 Liabilities Unfunded commitments 3,264 - 3,264 Total $ 36,916 $ 22,680 $ 14,236 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of estimated useful lives of premises and equipment | Depreciation expense is computed using the straight-line method over the following estimated useful lives. Buildings and improvements 40 years Land improvements 20 years Furniture, fixtures and equipment 2 - 7 years |
Schedule of changes in the allowance for credit losses due to adoption of ASU 2016-13 | The following table presents the changes in the allowance for credit losses required as a result of this adoption: January 1, 2023 As December 31, 2022 Reported After ASU Pre-ASU 2016-13 Impact of Allowance for Credit Losses 2016-13 Adoption Adoption 2016-13 Adoption Assets Loans held for investments Commercial/industrial $ 5,930 $ 4,071 $ 1,859 Commercial real estate - owner occupied 7,186 5,204 1,982 Commercial real estate - non-owner occupied 3,805 2,644 1,161 Commercial real estate - multi-family 3,514 2,761 753 Construction and development 3,655 1,592 2,063 Residential 1-4 family 8,511 5,944 2,567 Consumer 934 314 620 Other 117 150 (33) Loans held for investments, total 33,652 22,680 10,972 Liabilities Unfunded commitments 3,264 - 3,264 Total $ 36,916 $ 22,680 $ 14,236 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Hometown Bancorp, Ltd. | |
ACQUISITIONS | |
Schedule of fair value of the assets acquired and liabilities assumed | The fair value of the assets acquired and liabilities assumed on February 10, 2023 was as follows: As Recorded by Fair Value As Recorded by Hometown Adjustments the Company Cash, cash equivalents and securities $ 174,582 $ (1,010) $ 173,572 Other investments 1,195 — 1,195 Loans, net 406,168 (10,367) 395,801 Premises and equipment, net 7,577 (1,109) 6,468 Core deposit intangible 405 16,085 16,490 Other assets 28,011 (6,432) 21,579 Total assets acquired $ 617,938 $ (2,833) $ 615,105 Deposits $ 532,165 $ 209 $ 532,374 Other borrowings 5,000 (331) 4,669 Junior subordinated debentures 12,372 (1,464) 10,908 Other liabilities 469 1,144 1,613 Total liabilities assumed $ 550,006 $ (442) $ 549,564 Excess of assets acquired over liabilities assumed $ 67,932 $ (2,391) $ 65,541 Less: purchase price 130,452 Goodwill 64,911 Refinement to fair value estimates (1) (30) Goodwill (after refinement) $ 64,881 (1) Refinement consists of adjustments to the initial fair value estimates of other assets and liabilities. |
Schedule of loans purchased through acquisition | The Company purchased loans through this merger for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination. The carrying value of these loans at acquisition was as follows: The Company purchased loans through the acquisition of Hometown for which there was, at the date of acquisition, more than insignificant deterioration of credit quality since origination. The carrying amount of these loans at acquisition was as follows: February 10, 2023 Purchase price of PCD loans at acquisition $ 25,778 Non-credit discount on PCD loans at acquisition 4,498 Allowance for credit losses on PCD loans at acquisition 5,534 Par value of PCD acquired loans at acquisition $ 35,810 |
Denmark Bancshares, Inc. | |
ACQUISITIONS | |
Schedule of fair value of the assets acquired and liabilities assumed | The fair value of the assets acquired and liabilities assumed on August 12, 2022 was as follows: As Recorded by Fair Value As Recorded by (in thousands) Denmark Adjustments the Company Cash, cash equivalents and securities $ 188,017 $ (148) $ 187,869 Other investments 3,566 — 3,566 Loans, net 459,413 (2,358) 457,055 Premises and equipment, net 5,980 (1,635) 4,345 Core deposit intangible — 15,112 15,112 Other assets 17,704 189 17,893 Total assets acquired $ 674,680 $ 11,160 $ 685,840 Deposits $ 604,636 $ 166 $ 604,802 Other borrowings 842 — 842 Other liabilities 3,951 3,105 7,056 Total liabilities assumed $ 609,429 $ 3,271 $ 612,700 Excess of assets acquired over liabilities assumed $ 65,251 $ 7,889 $ 73,140 Less: purchase price 128,781 Goodwill (originally recorded) 55,641 Refinement to fair value estimates (1) (773) Goodwill (after refinement) $ 54,868 (1) Refinement consists of adjustments to the initial fair value estimates of other assets and liabilities, primarily related to accrued and deferred income taxes. |
Schedule of unaudited pro forma information | The unaudited pro forma information set forth below gives effect to the merger as if it had occurred on January 1, 2021, the beginning of the earliest period presented. Year Ended (in thousands, except per share data) December 31, 2022 Total revenue, net of interest expense $ 139,617 Net income $ 47,416 Diluted earnings per common share $ 5.21 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities | |
Schedule of available for sale securities | The following is a summary of available for sale securities (dollar amounts in thousands): Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value December 31, 2023 Obligations of U.S. Government sponsored agencies $ 31,453 $ 4 $ (3,163) $ 28,294 Obligations of states and political subdivisions 63,929 77 (5,760) 58,246 Mortgage-backed securities 37,789 5 (1,664) 36,130 Corporate notes 20,657 — (1,619) 19,038 Certificates of deposit 490 — (1) 489 Total available for sale securities $ 154,318 $ 86 $ (12,207) $ 142,197 December 31, 2022 U.S. Treasury securities $ 149,614 $ — $ (7,517) $ 142,097 Obligations of U.S. Government sponsored agencies 24,935 — (3,186) 21,749 Obligations of states and political subdivisions 90,701 88 (7,603) 83,186 Mortgage-backed securities 38,701 — (2,064) 36,637 Corporate notes 21,005 381 (1,392) 19,994 Certificates of deposit 1,004 — (30) 974 Total available for sale securities $ 325,960 $ 469 $ (21,792) $ 304,637 |
Schedule of held to maturity securities | Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value December 31, 2023 U.S. Treasury securities $ 99,173 $ 1,372 $ (1,070) $ 99,475 Obligations of states and political subdivisions 4,151 — — 4,151 Total held to maturity securities $ 103,324 $ 1,372 $ (1,070) $ 103,626 December 31, 2022 U.S. Treasury securities $ 39,902 $ 115 $ (1,440) $ 38,577 Obligations of states and political subdivisions 5,195 — (2) 5,193 Total held to maturity securities $ 45,097 $ 115 $ (1,442) $ 43,770 |
Schedule of fair value and gross unrealized losses of securities | The following table shows the fair value and gross unrealized losses of securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (dollar amounts in thousands): Less Than 12 Months Greater Than 12 Months Total Number Fair Unrealized Fair Unrealized Fair Unrealized of Value Losses Value Losses Value Losses Securities December 31, 2023 - Available for Sale Obligations of U.S. Government sponsored agencies $ 6,519 $ (173) $ 19,519 $ (2,990) $ 26,038 $ (3,163) 24 Obligations of states and political subdivisions 6,806 (71) 40,959 (5,689) 47,765 (5,760) 65 Mortgage-backed securities 5,751 (95) 28,693 (1,569) 34,444 (1,664) 104 Corporate notes 4,926 (68) 12,487 (1,551) 17,413 (1,619) 9 Certificate of deposits — — 489 (1) 489 (1) 2 Totals $ 24,002 $ (407) $ 102,147 $ (11,800) $ 126,149 $ (12,207) 204 December 31, 2023 - Held to Maturity U.S. Treasury securities $ 31,785 $ (99) $ 35,362 $ (971) $ 67,147 $ (1,070) 49 Obligations of states and political subdivisions — — 220 — 220 — 1 Totals $ 31,785 $ (99) $ 35,582 $ (971) $ 67,367 $ (1,070) 50 December 31, 2022 - Available for Sale U.S. Treasury securities $ 99,433 $ (559) $ 42,664 $ (6,958) $ 142,097 $ (7,517) 12 Obligations of U.S. Government sponsored agencies 6,735 (652) 15,014 (2,534) 21,749 (3,186) 16 Obligations of states and political subdivisions 50,839 (2,650) 15,933 (4,953) 66,772 (7,603) 103 Mortgage-backed securities 35,731 (1,993) 879 (71) 36,610 (2,064) 107 Corporate notes 9,701 (920) 3,080 (472) 12,781 (1,392) 8 Certificate of deposits 974 (30) — — 974 (30) 4 Totals $ 203,413 $ (6,804) $ 77,570 $ (14,988) $ 280,983 $ (21,792) 250 December 31, 2022 - Held to Maturity U.S. Treasury securities $ 29,464 $ (1,306) $ 4,868 $ (134) $ 34,332 $ (1,440) 15 Obligations of states and political subdivisions 417 (2) — — 417 (2) 2 Totals $ 29,881 $ (1,308) $ 4,868 $ (134) $ 34,749 $ (1,442) 17 |
Schedule of amortized cost and estimated fair value of securities by contract maturity | Contractual maturities will differ from expected maturities for mortgage-backed securities because borrowers may have the right to call or prepay obligations without penalties. The following is a summary of amortized cost and estimated fair value of securities, by contractual maturity, as of December 31, 2023 (dollar amounts in thousands): Available for Sale Held to Maturity Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due in one year or less $ 6,465 $ 6,394 $ 17,772 $ 17,639 Due after one year through 5 years 16,292 16,165 63,038 62,299 Due after 5 years through ten years 39,863 36,210 22,514 23,688 Due after 10 years 53,909 47,298 — — Subtotal 116,529 106,067 103,324 103,626 Mortgage-backed securities 37,789 36,130 — — Total $ 154,318 $ 142,197 $ 103,324 $ 103,626 |
Schedule of proceeds from sale of securities available for sale and related gross gains and losses | Following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses, from the years ended December 31 (dollar amounts in thousands): 2023 2022 2021 Proceeds from sales of securities $ 76,038 $ — $ 9,087 Gross gains on sales 122 — — Gross losses on sales (8,023) — (3) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loans | |
Schedule of loans by composition | The composition of loans at December 31 is as follows (dollar amounts in thousands): 2023 2022 Commercial/industrial $ 488,498 $ 492,563 Commercial real estate - owner occupied 893,977 717,401 Commercial real estate - non-owner occupied 473,829 391,133 Multi-family 332,959 290,650 Construction and development 201,823 200,022 Residential 1 ‑ 4 family 888,412 739,339 Consumer 50,741 44,796 Other 14,980 18,905 Subtotals 3,345,219 2,894,809 ACL - Loans (43,609) (22,680) Loans, net of ACL - Loans 3,301,610 2,872,129 Deferred loan fees, net (2,245) (831) Loans, net $ 3,299,365 $ 2,871,298 |
Summary of the activity in the ACL by loan type | A summary of the activity in ACL - Loans by loan type as of December 31, 2023 is as follows (dollar amounts in thousands): Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner Multi- and Residential Industrial Occupied Occupied Family Development 1-4 Family Consumer Other Total ACL - Loans - January 1, 2023 $ 4,071 $ 5,204 $ 2,644 $ 2,761 $ 1,592 $ 5,944 $ 314 $ 150 $ 22,680 Adoption of CECL 1,859 1,982 1,161 753 2,063 2,567 620 (33) 10,972 ACL - Loans on PCD loans acquired 1,082 4,424 — — — 28 — — 5,534 Charge-offs — — — — — — (4) (84) (88) Recoveries 22 70 — — — 106 4 17 219 Provision (1,069) 605 1,895 1,240 (58) 1,975 (319) 23 4,292 ACL - Loans - December 31, 2023 $ 5,965 $ 12,285 $ 5,700 $ 4,754 $ 3,597 $ 10,620 $ 615 $ 73 $ 43,609 A summary of the activity in the allowance for loan losses (“ALL”) by loan type as of December 31, 2022 is as follows (dollar amounts in thousands): Commercial Commercial Real Estate - Real Estate - Construction Commercial / Owner Non - Owner Multi- and Residential Industrial Occupied Occupied Family Development 1-4 Family Consumer Other Total ALL - January 1, 2022 $ 3,699 $ 5,633 $ 3,123 $ 2,028 $ 984 $ 4,445 $ 224 $ 179 $ 20,315 Charge-offs — (890) — — — (40) (27) (48) (1,005) Recoveries 499 74 360 — 152 14 6 65 1,170 Provision (127) 387 (106) — 456 1,525 111 (46) 2,200 ALL December 31, 2022 4,071 5,204 3,377 2,028 1,592 5,944 314 150 22,680 ALL ending balance individually evaluated for impairment — — 8 — — — — — 8 ALL ending balance collectively evaluated for impairment $ 4,071 $ 5,204 $ 3,369 $ 2,028 $ 1,592 $ 5,944 $ 314 $ 150 $ 22,672 Loans outstanding - December 31, 2022 $ 492,563 $ 717,401 $ 391,133 $ 290,650 $ 200,022 $ 739,339 $ 44,796 $ 18,905 $ 2,894,809 Loans ending balance individually evaluated for impairment 284 2,487 514 — — 201 — — 3,486 Loans ending balance collectively evaluated for impairment $ 492,279 $ 714,914 $ 390,619 $ 290,650 $ 200,022 $ 739,138 $ 44,796 $ 18,905 $ 2,891,323 |
Schedule of components of the provision for credit losses | The following table presents the components of the provision for credit losses (dollar amounts in thousands): Year Ended December 31, 2023 December 31, 2022 Provision for credit losses on: Loans $ 4,292 $ 2,200 Unfunded Commitments 390 — Total provision for credit losses $ 4,682 $ 2,200 |
Summary of past due loans | A summary of past due loans as of December 31, 2023 are as follows (dollar amounts in thousands): 90 Days Non-Accrual 30-89 Days or more with no Past Due Past Due Non- specifically Accruing and Accruing Accrual Total allocated ACL Commercial/industrial $ 4,303 $ 106 $ 1,344 $ 5,753 $ 365 Commercial real estate - owner occupied 180 252 3,877 4,309 343 Commercial real estate - non-owner occupied 14 — — 14 — Multi-family — — — — — Construction and development — — — — — Residential 1 ‑ 4 family 871 507 429 1,807 394 Consumer 68 28 12 108 11 Other — — — — — $ 5,436 $ 893 $ 5,662 $ 11,991 $ 1,113 A summary of past due loans as of December 31, 2022 are as follows (dollar amounts in thousands): 90 Days 30-89 Days or more Past Due Past Due Accruing and Accruing Non-Accrual Total Commercial/industrial $ 192 $ — $ 418 $ 610 Commercial real estate - owner occupied 1,301 — 2,688 3,989 Commercial real estate - non-owner occupied — — — — Multi-family — — — — Construction and development 237 — 17 254 Residential 1 ‑ 4 family 774 268 505 1,547 Consumer 19 5 — 24 Other — — — — $ 2,523 $ 273 $ 3,628 $ 6,424 |
Schedule of collateral dependent loans by portfolio segment and collateral type | Collateral Type As of December 31, 2023 Other Without an With an Allowance Real Estate Business Assets Total Allowance Allowance Allocation Commercial/industrial $ — $ 5,320 $ 5,320 $ 47 $ 5,273 $ 1,089 Commercial real estate - owner occupied 8,131 — 8,131 794 7,337 3,156 Commercial real estate - non-owner occupied — — — — — — Multi-family — — — — — — Construction and development — — — — — — Residential 1 ‑ 4 family 35 — 35 35 — — Consumer — — — — — — Other — — — — — — Total Loans $ 8,166 $ 5,320 $ 13,486 $ 876 $ 12,610 $ 4,245 |
Summary of impaired loans individually evaluated | Prior to the adoption of ASU 2016-13, the allowance included specific reserves for certain individually evaluated impaired loans. Specific reserves reflected estimated losses on impaired loans from management’s analysis developed through specific credit allocations. The following table shows a summary of impaired loans individually evaluated as of December 31, 2022 (dollar amounts in thousands): Commercial Commercial Real Estate - Real Estate - Construction Commercial/ Owner Non - Owner Multi- and Residential Industrial Occupied Occupied Family Development 1 ‑ 4 Family Consumer Other Total With an allowance recorded: Recorded investment $ — $ — $ 18 $ — $ — $ — $ — $ — $ 18 Unpaid principal balance — — 18 — — — — — 18 Related allowance — — 8 — — — — — 8 With no related allowance recorded: Recorded investment $ 284 $ 2,487 $ 497 $ — $ — $ 200 $ — $ — $ 3,468 Unpaid principal balance 284 2,487 497 — — 200 — — 3,468 Related allowance — — — — — — — — — Total: Recorded investment $ 284 $ 2,487 $ 515 $ — $ — $ 200 $ — $ — $ 3,486 Unpaid principal balance 284 2,487 515 — — 200 — — 3,486 Related allowance — — 8 — — — — — 8 Average recorded investment $ 361 $ 3,726 $ 1,017 $ — $ — $ 237 $ — $ — $ 5,341 |
Schedule of loans by risk ratings and year of origination | The following table presents total loans by risk ratings and year of origination. Loans acquired from other previously acquired institutions have been included in the table based upon the actual origination date (dollar amounts in thousands). Amortized Cost Basis by Origination Year As of December 31, 2023 Revolving 2023 2022 2021 2020 2019 Prior Revolving to Term Total Commercial/industrial Grades 1-4 $ 59,526 $ 133,469 $ 62,894 $ 54,552 $ 10,380 $ 20,575 $ 78,439 $ - $ 419,835 Grade 5 6,127 5,367 11,641 4,208 1,180 3,039 21,420 - 52,982 Grade 6 671 93 61 206 - - 627 - 1,658 Grade 7 365 271 5,756 2,351 30 1,687 3,563 - 14,023 Grade 8 - - - - - - - - - Total $ 66,689 $ 139,200 $ 80,352 $ 61,317 $ 11,590 $ 25,301 $ 104,049 $ - $ 488,498 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - owner occupied Grades 1-4 $ 55,239 $ 105,187 $ 167,124 $ 108,680 $ 47,115 $ 178,586 $ 33,220 $ - $ 695,151 Grade 5 7,586 24,734 24,890 12,955 11,168 26,179 21,519 - 129,031 Grade 6 - 1,161 1,694 110 867 6,552 699 - 11,083 Grade 7 3,143 9,988 10,061 2,313 14,775 15,777 2,655 - 58,712 Grade 8 - - - - - - - - - Total $ 65,968 $ 141,070 $ 203,769 $ 124,058 $ 73,925 $ 227,094 $ 58,093 $ - $ 893,977 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner occupied Grades 1-4 $ 54,774 $ 72,336 $ 127,450 $ 53,341 $ 45,898 $ 84,129 $ 9,870 $ - $ 447,798 Grade 5 944 4,819 2,872 3,516 97 10,081 - - 22,329 Grade 6 - - - - - - - - - Grade 7 - - 64 366 2,722 550 - - 3,702 Grade 8 - - - - - - - - - Total $ 55,718 $ 77,155 $ 130,386 $ 57,223 $ 48,717 $ 94,760 $ 9,870 $ - $ 473,829 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Multi-family Grades 1-4 $ 25,099 $ 28,144 $ 103,804 $ 74,083 $ 25,640 $ 61,589 $ 2,149 $ - $ 320,508 Grade 5 672 1,092 10,660 - - 27 - - 12,451 Grade 6 - - - - - - - - - Grade 7 - - - - - - - - - Grade 8 - - - - - - - - - Total $ 25,771 $ 29,236 $ 114,464 $ 74,083 $ 25,640 $ 61,616 $ 2,149 $ - $ 332,959 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction and development Grades 1-4 $ 65,134 $ 67,396 $ 35,017 $ 5,013 $ 1,853 $ 4,281 $ 779 $ - $ 179,473 Grade 5 11,796 1,190 6,060 743 - 84 808 - 20,681 Grade 6 - - - - - - - - - Grade 7 707 - - 172 - 790 - - 1,669 Grade 8 - - - - - - - - - Total $ 77,637 $ 68,586 $ 41,077 $ 5,928 $ 1,853 $ 5,155 $ 1,587 $ - $ 201,823 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential 1 ‑ 4 family Grades 1-4 $ 102,529 $ 199,295 $ 197,713 $ 160,489 $ 44,411 $ 77,644 $ 80,659 $ - $ 862,740 Grade 5 3,816 4,819 6,269 119 612 2,465 604 - 18,704 Grade 6 158 319 810 - - 180 249 - 1,716 Grade 7 316 366 29 1,022 400 2,947 172 - 5,252 Grade 8 - - - - - - - - - Total $ 106,819 $ 204,799 $ 204,821 $ 161,630 $ 45,423 $ 83,236 $ 81,684 $ - $ 888,412 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer Grades 1-4 $ 23,711 $ 12,497 $ 6,570 $ 4,498 $ 1,194 $ 1,326 $ 925 $ - $ 50,721 Grade 5 - - - - - - - - - Grade 6 - - - - - - - - - Grade 7 - - - - - 20 - - 20 Grade 8 - - - - - - - - - Total $ 23,711 $ 12,497 $ 6,570 $ 4,498 $ 1,194 $ 1,346 $ 925 $ - $ 50,741 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ 4 $ - $ 4 Other Grades 1-4 $ 347 $ 663 $ 551 $ 1,076 $ 38 $ 9,697 $ 2,520 $ - $ 14,892 Grade 5 - - - - - - 88 - 88 Grade 6 - - - - - - - - - Grade 7 - - - - - - - - - Grade 8 - - - - - - - - - Total $ 347 $ 663 $ 551 $ 1,076 $ 38 $ 9,697 $ 2,608 $ - $ 14,980 Current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ 84 $ - $ 84 Total Loans $ 422,660 $ 673,206 $ 781,990 $ 489,813 $ 208,380 $ 508,205 $ 260,965 $ - $ 3,345,219 Total current-period gross charge-offs $ - $ - $ - $ - $ - $ - $ 88 $ - $ 88 The breakdown of loans by risk rating as of December 31, 2022 is as follows (dollar amounts in thousands): Pass (1-5) 6 7 8 Total Commercial/industrial $ 474,699 $ 3,708 $ 14,156 $ — $ 492,563 Commercial real estate - owner occupied 666,424 8,031 42,946 — 717,401 Commercial real estate - non-owner occupied 386,816 — 4,317 — 391,133 Commercial real estate - multi-family 290,650 — — — 290,650 Construction and development 198,895 — 1,127 — 200,022 Residential 1 ‑ 4 family 735,971 151 3,217 — 739,339 Consumer 44,794 — 2 — 44,796 Other 18,905 — — — 18,905 $ 2,817,154 $ 11,890 $ 65,765 $ — $ 2,894,809 |
Schedule of loans acquired with deteriorated credit quality | The following tables present loans acquired with deteriorated credit quality and the change in the accretable and non-accretable components of the related discounts prior to the adoption of ASU 2016-13 (dollar amounts in thousands). December 31, 2022 Unpaid Recorded Principal Investment Balance Commercial & Industrial $ 712 $ 1,091 Commercial real estate - owner occupied 2,539 2,843 Commercial real estate - non-owner occupied — — Commercial real estate - multi-family — — Construction and development — — Residential 1 ‑ 4 family 824 1,045 Consumer — — Other — — $ 4,075 $ 4,979 |
Schedule of change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality | The following table represents the change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality (dollar amounts in thousands): December 31, 2022 Accretable Non-accretable discount discount Balance at beginning of period $ 813 $ 149 Acquired balance, net 292 211 Reclassifications between accretable and non-accretable 135 (135) Accretion to loan interest income (561) — Balance at end of period $ 679 $ 225 |
Related Party Matters (Tables)
Related Party Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Matters | |
Summary of loans to directors, executive officers, principal shareholders, and their affiliates | A summary of loans to directors, executive officers, principal shareholders, and their affiliates for the years ended December 31 is as follows (dollar amounts in thousands): 2023 2022 Balances at beginning $ 70,151 $ 73,498 New loans and advances 24,495 46,528 Repayments (30,754) (49,875) Balance at end $ 63,892 $ 70,151 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Servicing Rights | |
Schedule of analysis of activity in the MSR asset | Following is an analysis of activity in servicing rights assets that are measured at fair value (dollar amounts in thousands): Year Ended Year Ended December 31, 2023 December 31, 2022 Fair value at beginning of period $ 9,582 $ 5,016 Servicing asset additions 879 771 Loan payments and payoffs (1,624) (918) Changes in valuation inputs and assumptions used in the valuation model 1,140 3,012 Amount recognized through earnings 395 2,865 MSR asset acquired 3,691 1,701 Fair value at end of period $ 13,668 $ 9,582 Unpaid principal balance of loans serviced for others $ 1,175,709 $ 866,941 Mortgage servicing rights as a percent of loans serviced for others 1.16 1.11 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Premises and Equipment | |
Schedule of premises and equipment | An analysis of premises and equipment at December 31 follows (dollar amounts in thousands): 2023 2022 Land and land improvements $ 13,594 $ 9,539 Buildings and building improvements 60,790 50,215 Furniture and equipment 7,169 6,495 Totals 81,553 66,249 Less accumulated depreciation 13,245 11,383 Right-of-use lease asset (see Note 21) 1,583 1,582 Premises and equipment, net $ 69,891 $ 56,448 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Real Estate Owned | |
Summary of changes in OREO | Changes in OREO for the years ended December 31 were as follows (dollar amounts in thousands): 2023 2022 Beginning of year $ 2,520 $ 150 Transfers in 2,623 1,139 Assets Acquired 1,390 1,405 (Loss) gain on sale of OREO and valuation allowance (2,133) 146 Sales (1,827) (320) End of year $ 2,573 $ 2,520 |
Schedule of activity in the valuation allowance | Activity in the valuation allowance for the years ended December 31 was as follows (dollar amounts in thousands): 2023 2022 2021 Beginning of year $ — $ 187 $ 112 Additions charged to expense 1,591 24 217 Valuation relieved due to sale of OREO — (211) (142) End of year $ 1,591 $ — $ 187 |
Core Deposit Intangibles (Table
Core Deposit Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Core Deposit Intangibles | |
Schedule of gross carrying amount and accumulated amortization of intangible assets (excluding goodwill) | The gross carrying amount and accumulated amortization of core deposit intangibles for the years ended December 31 are as follows (dollar amounts in thousands): 2023 2022 Gross Intangible Gross Intangible Carrying Accumulated Carrying Accumulated Amount Amortization Amount Amortization Core deposit intangible $ 40,240 $ 13,244 $ 23,979 $ 7,150 |
Schedule of amortization expense | The following table shows the estimated future amortization expense of core deposit intangibles. The projections of amortization expense are based on existing asset balances as of December 31, 2023 (dollar amounts in thousands): Core Deposit Intangible 2024 $ 5,793 2025 5,003 2026 4,297 2027 3,590 2028 2,884 Thereafter 5,429 Total $ 26,996 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits | |
Schedule of composition of deposits | The composition of deposits at December 31 is as follows (dollar amounts in thousands): 2023 2022 Noninterest-bearing demand deposits $ 1,050,735 $ 934,092 Interest-bearing demand deposits 204,760 344,560 Savings deposits 1,595,395 1,357,571 Time deposits 581,283 417,285 Brokered certificates of deposit 747 6,721 Total deposits $ 3,432,920 $ 3,060,229 |
Schedule of maturities of time deposits | The scheduled maturities of time deposits at December 31, 2023, are summarized as follows (dollar amounts in thousands): 2024 $ 511,866 2025 47,987 2026 6,999 2027 2,560 2028 3,277 Thereafter 9,341 Total $ 582,030 |
Securities Sold Under Repurch_2
Securities Sold Under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Securities Sold Under Repurchase Agreements | |
Schedule of securities sold under repurchase agreements | Information concerning securities sold under repurchase agreements at December 31 consists of the following (dollar amounts in thousands): 2023 2022 2021 Outstanding balance at the end of the year $ 75,747 $ 97,196 $ 41,122 Weighted average interest rate at the end of the year 5.31 % 4.31 % 0.02 % Average balance during the year $ 36,833 $ 25,749 $ 34,637 Average interest rate during the year 4.92 % 2.11 % 0.03 % Maximum month end balance during the year $ 75,747 $ 97,196 $ 57,915 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes Payable | |
Schedule of advances, rate, and maturities of FHLB advances | There were $35,508,000 and $1,915,000 of advances outstanding from the FHLB at December 31, 2023 and 2022, respectively. From time to time the Bank utilized short-term FHLB advances to fund liquidity during these years. The advances, rate, and maturities of FHLB advances as of December 31 were as follows: Maturity Rate 2023 2022 (dollars in thousands) Fixed rate, fixed term 06/01/2023 1.79 % — 807 Fixed rate, fixed term 11/21/2023 3.06 % — 600 Fixed rate, fixed term 03/23/2026 4.02 % 10,000 — Fixed rate, fixed term 05/26/2026 1.95 % 5,000 — Fixed rate, fixed term 03/23/2027 3.91 % 10,000 — Fixed rate, fixed term 03/23/2028 3.85 % 10,000 — Fixed rate, fixed term 04/22/2030 0.00 % 508 508 35,508 1,915 Purchase accounting adjustment (238) 14 Total notes payable $ 35,270 $ 1,929 |
Schedule of future maturities of borrowings | Future maturities of borrowings were as follows (dollars in thousands): December 31, December 31, 2023 2022 1 year or less $ — $ 1,407 1 to 2 years — — 2 to 3 years 15,000 — 3 to 4 years 10,000 — 4 to 5 years 10,000 — Over 5 years 508 508 $ 35,508 $ 1,915 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of components of the provision for income taxes | The components of the provision for income taxes for the years ended December 31 are as follows (dollar amounts in thousands): 2023 2022 2021 Current tax expense: Federal $ 20,158 $ 10,328 $ 9,898 State 3,399 4,960 4,626 Deferred tax benefit: Federal (1,234) (617) (1) State (490) (252) — Change in valuation allowance 2,447 — — Total provision for income taxes $ 24,280 $ 14,419 $ 14,523 |
Schedule of effective income tax rate reconciliation | A summary of the sources of differences between income taxes at the federal statutory rate and the provision for income taxes for the years ended December 31 follows (dollar amounts in thousands): 2023 2022 2021 Tax expense at statutory rate $ 20,747 $ 12,523 $ 12,593 Increase (decrease) in taxes resulting from: Tax-exempt interest (995) (1,079) (1,074) State taxes (net of federal benefit) 2,685 3,719 3,666 Cash surrender value of life insurance (322) (194) (161) ESOP dividend (88) (77) (98) Nondeductible expenses associated with acquisition 61 189 — Change in valuation allowance 2,447 — — Other (255) (662) (403) Total provision for income taxes $ 24,280 $ 14,419 $ 14,523 |
Schedule of deferred tax assets and liabilities | Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are included in other liabilities of the balance sheet. The major components of the net deferred tax asset (liability) as of December 31 are presented below (dollar amounts in thousands): 2023 2022 Deferred tax assets: Deferred compensation $ 15 $ 43 Premises and equipment 357 439 Allowance for credit losses 12,856 6,178 Accrued vacation and severance 80 6 Other real estate owned 262 — Purchase accounting 3,855 2,152 Unrealized loss on securities available for sale 3,375 5,757 Net operating loss carry forward 592 — Other 494 1,384 Total deferred tax assets 21,886 15,959 Deferred tax liabilities: Investment in acquisition and discount accretion (1,557) (624) Mortgage servicing rights (3,703) (2,610) Other investments (101) (84) Prepaid expenses — — Investment in minority owned subsidiaries (944) (2,635) Goodwill and other intangibles (6,591) (5,341) Total deferred tax liabilities (12,896) (11,294) Valuation allowance (2,447) — Net deferred tax asset (liability) $ 6,543 $ 4,665 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Schedule of changes in restricted stock | For the year ended For the year ended December 31, 2023 December 31, 2022 Weighted- Weighted- Average Grant- Average Grant- Shares Date Fair Value Shares Date Fair Value Restricted Stock Outstanding at beginning of year 59,272 $ 65.85 58,611 $ 61.44 Granted 25,506 80.15 25,451 69.73 Vested (25,762) 64.25 (20,785) 60.52 Forfeited or cancelled (820) 67.02 (4,005) 60.50 Outstanding at end of year 58,196 $ 72.28 59,272 $ 65.85 |
Stockholders' Equity and Regu_2
Stockholders' Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity and Regulatory Matters | |
Schedule of Actual and required capital amounts and ratios | Actual and required capital amounts and ratios are presented below (dollar amounts in thousands): To Be Well Minimum Capital Capitalized Under For Capital Adequacy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2023 Total capital (to risk-weighted assets): Company $ 484,398 13.99 % $ 276,904 8.00 % $ 363,437 10.50 % NA NA Bank $ 446,634 12.91 % $ 276,726 8.00 % $ 363,202 10.50 % $ 345,907 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 437,979 12.65 % $ 207,678 6.00 % $ 294,211 8.50 % NA NA Bank $ 412,215 11.92 % $ 207,544 6.00 % $ 294,021 8.50 % $ 276,726 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 433,979 12.54 % $ 155,759 4.50 % $ 242,291 7.00 % NA NA Bank $ 412,215 11.92 % $ 155,658 4.50 % $ 242,135 7.00 % $ 224,840 6.50 % Tier 1 capital (to average assets): Company $ 437,979 11.05 % $ 158,581 4.00 % $ 158,581 4.00 % NA NA Bank $ 412,215 10.40 % $ 158,585 4.00 % $ 158,585 4.00 % $ 198,231 5.00 % To Be Well Minimum Capital Capitalized Under For Capital Adequacy with Prompt Corrective Actual Adequacy Purposes Capital Buffer Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2022 Total capital (to risk-weighted assets): Company $ 387,814 12.23 % $ 253,689 8.00 % $ 332,967 10.50 % NA NA Bank $ 372,312 11.75 % $ 253,504 8.00 % $ 332,724 10.50 % $ 316,880 10.00 % Tier 1 capital (to risk-weighted assets): Company $ 341,634 10.77 % $ 190,627 6.00 % $ 269,545 8.50 % NA NA Bank $ 349,632 11.03 % $ 190,128 6.00 % $ 269,348 8.50 % $ 253,504 8.00 % Common Equity Tier 1 capital (to risk-weighted assets): Company $ 341,634 10.77 % $ 142,700 4.50 % $ 221,978 7.00 % NA NA Bank $ 349,632 11.03 % $ 142,596 4.50 % $ 221,816 7.00 % $ 205,972 6.50 % Tier 1 capital (to average assets): Company $ 341,634 9.69 % $ 140,992 4.00 % $ 140,992 4.00 % NA NA Bank $ 349,632 9.93 % $ 140,887 4.00 % $ 140,887 4.00 % $ 176,108 5.00 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of commitments outstanding | The following commitments were outstanding at December 31 (dollar amounts in thousands): Notional Amount December 31, 2023 December 31, 2022 Commitments to extend credit: Fixed $ 92,113 $ 120,906 Variable 707,285 539,658 Credit card arrangements 21,213 17,364 Letters of credit 9,785 10,343 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Schedule of lease cost and other information related to leases | Year Ended (dollars in thousands) December 31, 2023 December 31, 2022 Amortization of ROU Assets - Operating Leases $ (2) $ (1) Interest on Lease Liabilities - Operating Leases 87 96 Operating Lease Cost (Cost resulting from lease payments) 85 95 Weighted Average Lease Term (Years) - Operating Leases 30.00 31.00 Weighted Average Discount Rate - Operating Leases 5.50 % 5.50 % |
Schedule of maturity analysis of operating lease liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liabilities is as follows (dollar amounts in thousands): December 31, 2023 Operating lease payments due: Within one year $ 85 After one but within two years 86 After two but within three years 94 After three but within four years 94 After four years but within five years 94 After five years 3,043 Total undiscounted cash flows 3,496 Discount on cash flows (1,913) Total operating lease liabilities $ 1,583 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value of Financial Instruments | |
Schedule of fair value of assets measured at fair value on a recurring basis | Information regarding the fair value of assets measured at fair value on a recurring basis is as follows (dollar amounts in thousands): Instruments Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2023 Assets Securities available for sale Obligations of U.S. Government sponsored agencies $ 28,294 $ — $ 28,294 $ — Obligations of states and political subdivisions 58,246 — 58,246 — Mortgage-backed securities 36,130 — 36,130 — Corporate notes 19,038 — 19,038 — Certificates of deposit 489 — 489 — Mortgage servicing rights 13,668 — 13,668 — December 31, 2022 Assets Securities available for sale U.S. Treasury securities $ 142,097 $ — $ 142,097 $ — Obligations of U.S. Government sponsored agencies 21,749 — 21,749 — Obligations of states and political subdivisions 83,186 — 83,186 — Mortgage-backed securities 36,637 — 36,637 — Corporate notes 19,994 — 19,994 — Certificates of deposit 974 — 974 — Mortgage servicing rights 9,582 — 9,582 — |
Schedule of fair value of assets measured on a non-recurring basis | Information regarding the fair value of assets measured at fair value on a non-recurring basis is as follows (dollar amounts in thousands): Quoted Prices In Active Significant Assets Markets Other Significant Measured for Identical Observable Unobservable At Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 31, 2023 OREO $ 2,573 $ — $ — $ 2,573 Loans individually evaluated, net of reserve 9,242 — — 9,242 $ 11,815 $ — $ — $ 11,815 December 31, 2022 OREO $ 2,520 $ — $ — $ 2,520 Impaired Loans, net of impairment reserve 3,478 — — 3,478 $ 5,998 $ — $ — $ 5,998 |
Schedule of fair value measurement on inputs and valuation techniques | Weighted Unobservable Range of Average Valuation Technique Inputs Discounts Discount As of December 31, 2023 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 3% - 71 % 38 % Loans individually evaluated Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 53 % 31 % As of December 31, 2022 Other real estate owned Third party appraisals, sales contracts or brokered price options Collateral discounts and estimated costs to sell 0 % 0 % Impaired loans Third party appraisals and discounted cash flows Collateral discounts and discount rates 0% - 71 % 26 % |
Schedule of carrying value and estimated fair value of financial instruments | The carrying value and estimated fair value of financial instruments at December 31 follows (dollar amounts in thousands): Carrying December 31, 2023 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 247,468 $ 247,468 $ — $ — $ 247,468 Securities held to maturity 103,324 99,475 4,151 — 103,626 Loans held for sale 3,012 — — 3,012 3,012 Loans, net 3,299,365 — — 3,168,749 3,168,749 Other investments 21,366 — — 21,366 21,366 Mortgage servicing rights 13,668 — 13,668 — 13,668 Financial liabilities: Deposits $ 3,432,920 $ — $ — $ 3,153,512 $ 3,153,512 Securities sold under repurchase agreements 75,747 — 75,747 — 75,747 Notes payable 35,270 — 35,270 — 35,270 Subordinated notes 12,000 — 12,000 — 12,000 Junior subordinated debentures 4,124 — 4,124 — 4,124 Carrying December 31, 2022 amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 119,351 $ 119,351 $ — $ — $ 119,351 Securities held to maturity 45,097 38,577 5,193 — 43,770 Loans held for sale 648 — — 648 648 Loans, net 2,871,298 — — 2,832,454 2,832,454 Other investments 16,495 — — 16,495 16,495 Mortgage servicing rights 9,582 — 9,582 — 9,582 Financial liabilities: Deposits $ 3,060,229 — — 2,732,007 2,732,007 Securities sold under repurchase agreements 97,196 — 97,196 — 97,196 Notes payable 1,929 — 1,929 — 1,929 Subordinated notes 23,500 — 23,500 — 23,500 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Parent Company Only Financial Statements | |
Schedule of parent company only balance sheets | Balance Sheets December 31 2023 2022 (In Thousands) Assets Cash and cash equivalents $ 37,360 $ 14,760 Securities 1,935 1,851 Investment in Bank 598,033 461,101 Investment in Veritas (Dissolved during 2023) — 39 Other assets 272 462 TOTAL ASSETS $ 637,600 $ 478,213 Liabilities and Stockholders’ Equity Liabilities Subordinated notes $ 12,000 $ 23,500 Junior subordinated notes 4,124 — Other liabilities 1,678 1,610 Total liabilities 17,802 25,110 Stockholders’ equity: Common stock 115 101 Additional paid-in capital 333,815 218,263 Retained earnings 348,001 295,496 Treasury stock, at cost (53,387) (45,191) Accumulated other comprehensive income (loss) (8,746) (15,566) Total stockholders’ equity 619,798 453,103 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 637,600 $ 478,213 |
Schedule of parent company only statements of income | Statements of Income Years Ended December 31 2023 2022 2021 (In Thousands) Income: Dividends received from Bank $ 68,573 $ 22,281 $ 22,361 Equity in undistributed earnings of subsidiaries 10,271 25,258 24,687 Other income — 9 — Total income 78,844 47,548 47,048 Other expenses 5,951 3,204 2,205 Benefit for income taxes (1,621) (870) (601) Net income $ 74,514 $ 45,214 $ 45,444 |
Schedule of parent company only statements of cash flows | Statements of Cash Flows Years Ended December 31, 2023 2022 2021 (In thousands) Cash flow from operating activities: Net income $ 74,514 $ 45,214 $ 45,444 Adjustments to reconcile net income to net cash used in operating activities: Stock compensation 2,142 1,662 1,393 Equity in earnings of subsidiaries (includes dividends) (78,844) (47,539) (47,048) Changes in other assets and liabilities: Other assets 403 (772) 1 Other liabilities (623) (2,054) (660) Net cash used in operating activities (2,408) (3,489) (870) Cash flows from investing activities, net of effects of business combination: Dividends received from Bank 69,982 22,355 22,360 Dividends received from Veritas 37 — — Net cash used in business combination (4,554) 5,159 — Proceeds from other investments 248 — — Net cash provided by investing activities 65,713 27,514 22,360 Cash flows from financing activities, net of effects of business combination: Repayment of junior subordinated debentures (8,248) — — Repayment of subordinate notes (11,500) — — Proceeds from subordinated notes — 6,000 — Cash dividends paid (11,106) (7,248) (8,733) Issuance of common stock 195 114 114 Repurchase of common stock (10,046) (14,314) (8,272) Net cash used in financing activities (40,705) (15,448) (16,891) Net increase in cash and cash equivalents 22,600 8,577 4,599 Cash and cash equivalents at beginning 14,760 6,183 1,584 Cash and cash equivalents at end $ 37,360 $ 14,760 $ 6,183 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Common Share | |
Schedule of earnings per common share | Years ended December 31, (in thousands, except per share data) 2023 2022 2021 Basic Net income available to common shareholders $ 74,514 $ 45,214 $ 45,444 Less: Earnings allocated to participating securities (425) $ (330) $ (351) Net income allocated to common shareholders $ 74,089 $ 44,884 $ 45,093 Weighted average common shares outstanding including participating securities 10,231,569 8,104,117 7,680,896 Less: Participating securities (58,359) (59,211) (59,264) Average shares 10,173,210 8,044,906 7,621,632 Basic earnings per common shares $ 7.28 $ 5.58 $ 5.92 Diluted Net income available to common shareholders $ 74,514 $ 45,214 $ 45,444 Weighted average common shares outstanding for basic earnings per common share 10,173,210 8,044,906 7,621,632 Add: Dilutive effects of stock based compensation awards 25,783 24,354 21,535 Average shares and dilutive potential common shares 10,198,993 8,069,260 7,643,167 Diluted earnings per common share $ 7.28 $ 5.58 $ 5.92 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Principles of Consolidation (Details) - USD ($) | Dec. 31, 2023 | Oct. 01, 2023 | Dec. 31, 2022 |
Disposed of by sale | UFS LLC | |||
Summary of Significant Accounting Policies | |||
Percentage of ownership interest sold | 100% | ||
UFS LLC | |||
Summary of Significant Accounting Policies | |||
Number of bank locations | 60 | ||
Bank | |||
Summary of Significant Accounting Policies | |||
Percentage of the Bank's ownership interest in equity-method investment | 49.80% | ||
Bank | UFS LLC | |||
Summary of Significant Accounting Policies | |||
Percentage of the Bank's ownership interest in equity-method investment | 49.80% | ||
TVG | Ansay | |||
Summary of Significant Accounting Policies | |||
Percentage of subsidiary interest in equity method investment | 40% | 40% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of Significant Accounting Policies | ||
Uninsured balances | $ 3,100,000 | $ 2,900,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Loans and Related Interest Income (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Commercial Real Estate | Minimum | |
Loans | |
Borrowers cash flow ratio | 110% |
Commercial Real Estate | Maximum | |
Loans | |
Term of loans | 10 years |
Loan to Value Ratio | 85% |
Construction and development | Minimum | |
Loans | |
Term of loans | 9 months |
Construction and development | Maximum | |
Loans | |
Term of loans | 24 months |
Loan to Value Ratio | 85% |
Residential 1-4 Family | Maximum | |
Loans | |
Term of loans | 30 years |
Term of home equity loans | 20 years |
Loan to Value Ratio | 90% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |||
Goodwill and core deposit intangible impairment | $ 0 | $ 0 | $ 0 |
Buildings and improvements | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 40 years | ||
Land improvements | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 20 years | ||
Furniture, fixtures and equipment | Minimum | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 2 years | ||
Furniture, fixtures and equipment | Maximum | |||
Summary of Significant Accounting Policies | |||
Estimated useful life | 7 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Per Share Computations (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |||
Weighted average shares outstanding | 10,231,569 | 8,104,117 | 7,680,896 |
Dilutive instruments outstanding | 58,359 | 59,211 | 59,264 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) | Dec. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 |
Summary of Significant Accounting Policies | |||
Retained earnings | $ 348,001,000 | $ 295,496,000 | |
Allowance for Credit Losses | 43,609,000 | 22,680,000 | |
Commercial/industrial | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 5,965,000 | 4,071,000 | |
Commercial real estate-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 12,285,000 | 5,204,000 | |
Commercial real estate - non-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 5,700,000 | 2,644,000 | |
Construction and development | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 3,597,000 | 1,592,000 | |
Residential 1-4 family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 10,620,000 | 5,944,000 | |
Consumer | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 615,000 | 314,000 | |
Other | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | $ 73,000 | 150,000 | |
Loans held for investments | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 22,680,000 | ||
Loans held for investments | Commercial/industrial | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 4,071,000 | ||
Loans held for investments | Commercial real estate-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 5,204,000 | ||
Loans held for investments | Commercial real estate - non-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 2,644,000 | ||
Loans held for investments | Commercial Real Estate - multi-family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 2,761,000 | ||
Loans held for investments | Construction and development | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,592,000 | ||
Loans held for investments | Residential 1-4 family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 5,944,000 | ||
Loans held for investments | Consumer | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 314,000 | ||
Loans held for investments | Other | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 150,000 | ||
Adoption (adjustments) | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 10,972,000 | ||
Adoption (adjustments) | Commercial/industrial | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,859,000 | ||
Adoption (adjustments) | Commercial real estate-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,982,000 | ||
Adoption (adjustments) | Commercial real estate - non-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,161,000 | ||
Adoption (adjustments) | Construction and development | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 2,063,000 | ||
Adoption (adjustments) | Residential 1-4 family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 2,567,000 | ||
Adoption (adjustments) | Consumer | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 620,000 | ||
Adoption (adjustments) | Other | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | (33,000) | ||
ASU 2016-13 | Reported after ASU Adoption | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 36,916,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 33,652,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Commercial/industrial | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 5,930,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Commercial real estate-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 7,186,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Commercial real estate - non-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 3,805,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Commercial Real Estate - multi-family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 3,514,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Construction and development | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 3,655,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Residential 1-4 family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 8,511,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Consumer | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 934,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Loans held for investments | Other | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 117,000 | ||
ASU 2016-13 | Reported after ASU Adoption | Unfunded commitments | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 3,264,000 | ||
ASU 2016-13 | Adoption (adjustments) | |||
Summary of Significant Accounting Policies | |||
Retained earnings | (10,050,000) | ||
Allowance for Credit Losses | 14,236,000 | ||
ASU 2016-13 | Adoption (adjustments) | Financial Asset Acquired with Credit Deterioration | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | $ 300,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 10,972,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Commercial/industrial | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,859,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Commercial real estate-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,982,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Commercial real estate - non-owner occupied | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 1,161,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Commercial Real Estate - multi-family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 753,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Construction and development | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 2,063,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Residential 1-4 family | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 2,567,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Consumer | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | 620,000 | ||
ASU 2016-13 | Adoption (adjustments) | Loans held for investments | Other | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | (33,000) | ||
ASU 2016-13 | Adoption (adjustments) | Unfunded commitments | |||
Summary of Significant Accounting Policies | |||
Allowance for Credit Losses | $ 3,264,000 |
Acquisitions - Hometown (Detail
Acquisitions - Hometown (Details) | 12 Months Ended | ||
Feb. 10, 2023 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
ACQUISITIONS | |||
Value of shares issued in business combination | $ 115,079,000 | $ 124,771,000 | |
Hometown Bancorp, Ltd. | |||
ACQUISITIONS | |||
Number of branches operated | 10 | ||
Total amount of merger consideration | $ 130,452,000 | ||
Number of company shares received for each share of acquisition company common stock | shares | 0.3962 | ||
Acquisition price, cash per share | $ / shares | $ 29.16 | ||
Maximum percentage of total consideration consisting of cash | 30% | ||
Number of shares issued as part of consideration | shares | 1,450,272 | ||
Value of shares issued in business combination | $ 115,079,000 | ||
Cash paid as consideration | $ 15,373,000 |
Acquisitions - Hometown - Fair
Acquisitions - Hometown - Fair value of assets acquired and liabilities assumed (Details) - USD ($) | Feb. 10, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
ACQUISITIONS | |||
Total assets acquired | $ 615,105,000 | $ 685,840,000 | |
Total liabilities assumed | 549,564,000 | 612,700,000 | |
Excess of assets acquired over liabilities assumed | 65,541,000 | 73,140,000 | |
Goodwill | $ 175,106,000 | $ 110,206,000 | |
Hometown Bancorp, Ltd. | |||
ACQUISITIONS | |||
Cash, cash equivalents and securities | $ 173,572,000 | ||
Other investments | 1,195,000 | ||
Loans, net | 395,801,000 | ||
Premises and equipment, net | 6,468,000 | ||
Core deposit intangible | 16,490,000 | ||
Other assets | 21,579,000 | ||
Total assets acquired | 615,105,000 | ||
Deposits | 532,374,000 | ||
Other borrowings | 4,669,000 | ||
Junior subordinated debentures | 10,908,000 | ||
Other liabilities | 1,613,000 | ||
Total liabilities assumed | 549,564,000 | ||
Excess of assets acquired over liabilities assumed | 65,541,000 | ||
Less: purchase price | 130,452,000 | ||
Goodwill | 64,911,000 | ||
Refinement to fair value estimates | (30,000) | ||
Goodwill (after refinement) | 64,881,000 | ||
Hometown Bancorp, Ltd. | Adjustments | |||
ACQUISITIONS | |||
Cash, cash equivalents and securities | (1,010,000) | ||
Loans, net | (10,367,000) | ||
Premises and equipment, net | (1,109,000) | ||
Core deposit intangible | 16,085,000 | ||
Other assets | (6,432,000) | ||
Total assets acquired | (2,833,000) | ||
Deposits | 209,000 | ||
Other borrowings | (331,000) | ||
Junior subordinated debentures | (1,464,000) | ||
Other liabilities | 1,144,000 | ||
Total liabilities assumed | (442,000) | ||
Excess of assets acquired over liabilities assumed | (2,391,000) | ||
Hometown Bancorp, Ltd. | Previously Reported | |||
ACQUISITIONS | |||
Cash, cash equivalents and securities | 174,582,000 | ||
Other investments | 1,195,000 | ||
Loans, net | 406,168,000 | ||
Premises and equipment, net | 7,577,000 | ||
Core deposit intangible | 405,000 | ||
Other assets | 28,011,000 | ||
Total assets acquired | 617,938,000 | ||
Deposits | 532,165,000 | ||
Other borrowings | 5,000,000 | ||
Junior subordinated debentures | 12,372,000 | ||
Other liabilities | 469,000 | ||
Total liabilities assumed | 550,006,000 | ||
Excess of assets acquired over liabilities assumed | $ 67,932,000 |
Acquisitions - Hometown - Loans
Acquisitions - Hometown - Loans purchased through acquisition (Details) - Hometown Bancorp, Ltd. $ in Thousands | Feb. 10, 2023 USD ($) |
ACQUISITIONS | |
Purchase price of PCD loans at acquisition | $ 25,778 |
Non-credit discount on PCD loans at acquisition | 4,498 |
Allowance for credit losses on PCD loans at acquisition | 5,534 |
Par value of PCD acquired loans at acquisition | $ 35,810 |
Acquisitions - Denmark (Details
Acquisitions - Denmark (Details) | 12 Months Ended | ||
Aug. 12, 2022 USD ($) item $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
ACQUISITIONS | |||
Value of shares issued in business combination | $ 115,079,000 | $ 124,771,000 | |
Denmark Bancshares, Inc. | |||
ACQUISITIONS | |||
Number of branches operated | item | 7 | ||
Total amount of merger consideration | $ 128,781,000 | ||
Number of company shares received for each share of acquisition company common stock | shares | 0.5276 | ||
Acquisition price, cash per share | $ / shares | $ 38.10 | ||
Maximum percentage of total consideration consisting of cash | 20% | ||
Number of shares issued as part of consideration | shares | 1,579,530 | ||
Value of shares issued in business combination | $ 124,771,000 | ||
Cash paid as consideration | $ 4,010,000 |
Acquisitions - Denmark - Fair v
Acquisitions - Denmark - Fair value of assets acquired and liabilities assumed (Details) - USD ($) | Aug. 12, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
ACQUISITIONS | |||
Total assets acquired | $ 615,105,000 | $ 685,840,000 | |
Total liabilities assumed | 549,564,000 | 612,700,000 | |
Excess of assets acquired over liabilities assumed | 65,541,000 | 73,140,000 | |
Goodwill (originally recorded) | $ 175,106,000 | $ 110,206,000 | |
Denmark Bancshares, Inc. | |||
ACQUISITIONS | |||
Cash, cash equivalents and securities | $ 187,869,000 | ||
Other investments | 3,566,000 | ||
Loans, net | 457,055,000 | ||
Premises and equipment, net | 4,345,000 | ||
Core deposit intangible | 15,112,000 | ||
Other assets | 17,893,000 | ||
Total assets acquired | 685,840,000 | ||
Deposits | 604,802,000 | ||
Other borrowings | 842,000 | ||
Other liabilities | 7,056,000 | ||
Total liabilities assumed | 612,700,000 | ||
Excess of assets acquired over liabilities assumed | 73,140,000 | ||
Less: purchase price | 128,781,000 | ||
Goodwill (originally recorded) | 55,641,000 | ||
Refinement to fair value estimates | (773,000) | ||
Goodwill (after refinement) | 54,868,000 | ||
Denmark Bancshares, Inc. | Adjustments | |||
ACQUISITIONS | |||
Cash, cash equivalents and securities | (148,000) | ||
Loans, net | (2,358,000) | ||
Premises and equipment, net | (1,635,000) | ||
Core deposit intangible | 15,112,000 | ||
Other assets | 189,000 | ||
Total assets acquired | 11,160,000 | ||
Deposits | 166,000 | ||
Other liabilities | 3,105,000 | ||
Total liabilities assumed | 3,271,000 | ||
Excess of assets acquired over liabilities assumed | 7,889,000 | ||
Denmark Bancshares, Inc. | Previously Reported | |||
ACQUISITIONS | |||
Cash, cash equivalents and securities | 188,017,000 | ||
Other investments | 3,566,000 | ||
Loans, net | 459,413,000 | ||
Premises and equipment, net | 5,980,000 | ||
Other assets | 17,704,000 | ||
Total assets acquired | 674,680,000 | ||
Deposits | 604,636,000 | ||
Other borrowings | 842,000 | ||
Other liabilities | 3,951,000 | ||
Total liabilities assumed | 609,429,000 | ||
Excess of assets acquired over liabilities assumed | $ 65,251,000 |
Acquisitions - Denmark Pro Form
Acquisitions - Denmark Pro Forma (Details) - Denmark Bancshares, Inc. $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares | |
ACQUISITIONS | |
Total revenue, net of interest expense | $ 139,617 |
Net income | $ 47,416 |
Diluted earnings per common share | $ / shares | $ 5.21 |
Securities - Summary of securit
Securities - Summary of securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available for sale securities | ||
Amortized Cost | $ 154,318 | $ 325,960 |
Gross Unrealized Gains | 86 | 469 |
Gross Unrealized Losses | (12,207) | (21,792) |
Estimated Fair Value | 142,197 | 304,637 |
Held to maturity securities | ||
Amortized Cost | 103,324 | 45,097 |
Gross Unrealized Gains | 1,372 | 115 |
Gross Unrealized Losses | (1,070) | (1,442) |
Estimated Fair Value | 103,626 | 43,770 |
U.S. Treasury securities | ||
Available for sale securities | ||
Amortized Cost | 149,614 | |
Gross Unrealized Losses | (7,517) | |
Estimated Fair Value | 142,097 | |
Held to maturity securities | ||
Amortized Cost | 99,173 | 39,902 |
Gross Unrealized Gains | 1,372 | 115 |
Gross Unrealized Losses | (1,070) | (1,440) |
Estimated Fair Value | 99,475 | 38,577 |
Obligations of U.S. Government sponsored agencies | ||
Available for sale securities | ||
Amortized Cost | 31,453 | 24,935 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (3,163) | (3,186) |
Estimated Fair Value | 28,294 | 21,749 |
Obligations of states and political subdivisions | ||
Available for sale securities | ||
Amortized Cost | 63,929 | 90,701 |
Gross Unrealized Gains | 77 | 88 |
Gross Unrealized Losses | (5,760) | (7,603) |
Estimated Fair Value | 58,246 | 83,186 |
Held to maturity securities | ||
Amortized Cost | 4,151 | 5,195 |
Gross Unrealized Losses | (2) | |
Estimated Fair Value | 4,151 | 5,193 |
Mortgage-backed securities | ||
Available for sale securities | ||
Amortized Cost | 37,789 | 38,701 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (1,664) | (2,064) |
Estimated Fair Value | 36,130 | 36,637 |
Corporate notes | ||
Available for sale securities | ||
Amortized Cost | 20,657 | 21,005 |
Gross Unrealized Gains | 381 | |
Gross Unrealized Losses | (1,619) | (1,392) |
Estimated Fair Value | 19,038 | 19,994 |
Certificates of deposit | ||
Available for sale securities | ||
Amortized Cost | 490 | 1,004 |
Gross Unrealized Losses | (1) | (30) |
Estimated Fair Value | $ 489 | $ 974 |
Securities - Fair value and gro
Securities - Fair value and gross unrealized losses of securities with unrealized losses (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 24,002,000 | $ 203,413,000 |
Less Than 12 Months, Unrealized Losses | (407,000) | (6,804,000) |
Greater Than 12 Months, Fair Value | 102,147,000 | 77,570,000 |
Greater Than 12 Months, Unrealized Losses | (11,800,000) | (14,988,000) |
Total, Fair Value | 126,149,000 | 280,983,000 |
Total, Unrealized Losses | $ (12,207,000) | $ (21,792,000) |
Number of Securities | 204 | 250 |
Held to Maturity | ||
Less Than 12 Months, Fair Value | $ 31,785,000 | $ 29,881,000 |
Less Than 12 Months, Unrealized Losses | (99,000) | (1,308,000) |
Greater Than 12 Months, Fair Value | 35,582,000 | 4,868,000 |
Greater Than 12 Months, Unrealized Losses | (971,000) | (134,000) |
Total, Fair Value | 67,367,000 | 34,749,000 |
Total, Unrealized Losses | $ (1,070,000) | $ (1,442,000) |
Number of Securities | 50 | 17 |
Debt Securities, Available for Sale, Allowance for credit losses | $ 0 | |
U.S. Treasury securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 99,433,000 | |
Less Than 12 Months, Unrealized Losses | (559,000) | |
Greater Than 12 Months, Fair Value | 42,664,000 | |
Greater Than 12 Months, Unrealized Losses | (6,958,000) | |
Total, Fair Value | 142,097,000 | |
Total, Unrealized Losses | $ (7,517,000) | |
Number of Securities | 12 | |
Held to Maturity | ||
Less Than 12 Months, Fair Value | 31,785,000 | $ 29,464,000 |
Less Than 12 Months, Unrealized Losses | (99,000) | (1,306,000) |
Greater Than 12 Months, Fair Value | 35,362,000 | 4,868,000 |
Greater Than 12 Months, Unrealized Losses | (971,000) | (134,000) |
Total, Fair Value | 67,147,000 | 34,332,000 |
Total, Unrealized Losses | $ (1,070,000) | $ (1,440,000) |
Number of Securities | 49 | 15 |
Obligations of U.S. Government sponsored agencies | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 6,519,000 | $ 6,735,000 |
Less Than 12 Months, Unrealized Losses | (173,000) | (652,000) |
Greater Than 12 Months, Fair Value | 19,519,000 | 15,014,000 |
Greater Than 12 Months, Unrealized Losses | (2,990,000) | (2,534,000) |
Total, Fair Value | 26,038,000 | 21,749,000 |
Total, Unrealized Losses | $ (3,163,000) | $ (3,186,000) |
Number of Securities | 24 | 16 |
Obligations of states and political subdivisions | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 6,806,000 | $ 50,839,000 |
Less Than 12 Months, Unrealized Losses | (71,000) | (2,650,000) |
Greater Than 12 Months, Fair Value | 40,959,000 | 15,933,000 |
Greater Than 12 Months, Unrealized Losses | (5,689,000) | (4,953,000) |
Total, Fair Value | 47,765,000 | 66,772,000 |
Total, Unrealized Losses | $ (5,760,000) | $ (7,603,000) |
Number of Securities | 65 | 103 |
Held to Maturity | ||
Less Than 12 Months, Fair Value | $ 417,000 | |
Less Than 12 Months, Unrealized Losses | (2,000) | |
Greater Than 12 Months, Fair Value | $ 220,000 | |
Total, Fair Value | $ 220,000 | 417,000 |
Total, Unrealized Losses | $ (2,000) | |
Number of Securities | 1 | 2 |
Mortgage-backed securities | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 5,751,000 | $ 35,731,000 |
Less Than 12 Months, Unrealized Losses | (95,000) | (1,993,000) |
Greater Than 12 Months, Fair Value | 28,693,000 | 879,000 |
Greater Than 12 Months, Unrealized Losses | (1,569,000) | (71,000) |
Total, Fair Value | 34,444,000 | 36,610,000 |
Total, Unrealized Losses | $ (1,664,000) | $ (2,064,000) |
Number of Securities | 104 | 107 |
Corporate notes | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 4,926,000 | $ 9,701,000 |
Less Than 12 Months, Unrealized Losses | (68,000) | (920,000) |
Greater Than 12 Months, Fair Value | 12,487,000 | 3,080,000 |
Greater Than 12 Months, Unrealized Losses | (1,551,000) | (472,000) |
Total, Fair Value | 17,413,000 | 12,781,000 |
Total, Unrealized Losses | $ (1,619,000) | $ (1,392,000) |
Number of Securities | 9 | 8 |
Certificates of Deposits | ||
Available for Sale | ||
Less Than 12 Months, Fair Value | $ 974,000 | |
Less Than 12 Months, Unrealized Losses | (30,000) | |
Greater Than 12 Months, Fair Value | $ 489,000 | |
Greater Than 12 Months, Unrealized Losses | (1,000) | |
Total, Fair Value | 489,000 | 974,000 |
Total, Unrealized Losses | $ (1,000) | $ (30,000) |
Number of Securities | 2 | 4 |
Securities - Amortized cost and
Securities - Amortized cost and estimated fair value of securities by contractual maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 6,465 | |
Due after one year through 5 years | 16,292 | |
Due after 5 years through ten years | 39,863 | |
Due after 10 years | 53,909 | |
Subtotal | 116,529 | |
Mortgage-backed securities | 37,789 | |
Amortized Cost | 154,318 | $ 325,960 |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 6,394 | |
Due after one year through 5 years | 16,165 | |
Due after 5 years through ten years | 36,210 | |
Due after 10 years | 47,298 | |
Subtotal | 106,067 | |
Mortgage-backed securities | 36,130 | |
Total | 142,197 | 304,637 |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 17,772 | |
Due after one year through 5 years | 63,038 | |
Due after 5 years through ten years | 22,514 | |
Subtotal | 103,324 | |
Amortized Cost | 103,324 | 45,097 |
Held to Maturity, Estimated Fair Value | ||
Due in one year or less | 17,639 | |
Due after one year through 5 years | 62,299 | |
Due after 5 years through ten years | 23,688 | |
Subtotal | 103,626 | |
Total | $ 103,626 | $ 43,770 |
Securities - Sales of securitie
Securities - Sales of securities available for sate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Securities | |||
Proceeds from sales of securities | $ 76,038,000 | $ 9,087,000 | |
Gross gains on sales | 122,000 | ||
Gross losses on sales | (8,023,000) | $ (3,000) | |
Carrying values of pledged securities | $ 204,848,000 | $ 226,892,000 |
Loans- Composition of loans (De
Loans- Composition of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans | ||
Subtotals | $ 3,345,219 | $ 2,894,809 |
ACL - Loans | (43,609) | (22,680) |
Loans, net of ACL - Loans | 3,301,610 | 2,872,129 |
Deferred loan fees, net | (2,245) | (831) |
Loans, net | $ 3,299,365 | 2,871,298 |
ACL-Loans to total loans ratio | 1.30% | |
Commercial/Industrial | ||
Loans | ||
Subtotals | $ 488,498 | 492,563 |
ACL - Loans | (5,965) | (4,071) |
Commercial real estate-owner occupied | ||
Loans | ||
Subtotals | 893,977 | 717,401 |
ACL - Loans | (12,285) | (5,204) |
Commercial real estate - non-owner occupied | ||
Loans | ||
Subtotals | 473,829 | 391,133 |
ACL - Loans | (5,700) | (2,644) |
Multi-family | ||
Loans | ||
Subtotals | 332,959 | 290,650 |
ACL - Loans | (4,754) | (2,761) |
Construction and development | ||
Loans | ||
Subtotals | 201,823 | 200,022 |
ACL - Loans | (3,597) | (1,592) |
Residential 1-4 Family | ||
Loans | ||
Subtotals | 888,412 | 739,339 |
ACL - Loans | (10,620) | (5,944) |
Consumer | ||
Loans | ||
Subtotals | 50,741 | 44,796 |
ACL - Loans | (615) | (314) |
Other | ||
Loans | ||
Subtotals | 14,980 | 18,905 |
ACL - Loans | $ (73) | $ (150) |
Loans - Rollforward of activity
Loans - Rollforward of activity in the ACL - Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans | ||
ACL - Loans, Beginning balance | $ 22,680 | |
ACL on PCD loans acquired | 5,534 | |
Charge-offs | (88) | |
Recoveries | 219 | |
Provision | 4,292 | $ 2,200 |
ACL - Loans, Ending balance | 43,609 | 22,680 |
Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 10,972 | |
ACL - Loans, Ending balance | 10,972 | |
Commercial/Industrial | ||
Loans | ||
ACL - Loans, Beginning balance | 4,071 | |
ACL on PCD loans acquired | 1,082 | |
Recoveries | 22 | |
Provision | (1,069) | |
ACL - Loans, Ending balance | 5,965 | 4,071 |
Commercial/Industrial | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 1,859 | |
ACL - Loans, Ending balance | 1,859 | |
Commercial real estate-owner occupied | ||
Loans | ||
ACL - Loans, Beginning balance | 5,204 | |
ACL on PCD loans acquired | 4,424 | |
Recoveries | 70 | |
Provision | 605 | |
ACL - Loans, Ending balance | 12,285 | 5,204 |
Commercial real estate-owner occupied | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 1,982 | |
ACL - Loans, Ending balance | 1,982 | |
Commercial real estate - non-owner occupied | ||
Loans | ||
ACL - Loans, Beginning balance | 2,644 | |
Provision | 1,895 | |
ACL - Loans, Ending balance | 5,700 | 2,644 |
Commercial real estate - non-owner occupied | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 1,161 | |
ACL - Loans, Ending balance | 1,161 | |
Multi-family | ||
Loans | ||
ACL - Loans, Beginning balance | 2,761 | |
Provision | 1,240 | |
ACL - Loans, Ending balance | 4,754 | 2,761 |
Multi-family | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 753 | |
ACL - Loans, Ending balance | 753 | |
Construction and development | ||
Loans | ||
ACL - Loans, Beginning balance | 1,592 | |
Provision | (58) | |
ACL - Loans, Ending balance | 3,597 | 1,592 |
Construction and development | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 2,063 | |
ACL - Loans, Ending balance | 2,063 | |
Residential 1-4 Family | ||
Loans | ||
ACL - Loans, Beginning balance | 5,944 | |
ACL on PCD loans acquired | 28 | |
Recoveries | 106 | |
Provision | 1,975 | |
ACL - Loans, Ending balance | 10,620 | 5,944 |
Residential 1-4 Family | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 2,567 | |
ACL - Loans, Ending balance | 2,567 | |
Consumer | ||
Loans | ||
ACL - Loans, Beginning balance | 314 | |
Charge-offs | (4) | |
Recoveries | 4 | |
Provision | (319) | |
ACL - Loans, Ending balance | 615 | 314 |
Consumer | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | 620 | |
ACL - Loans, Ending balance | 620 | |
Other | ||
Loans | ||
ACL - Loans, Beginning balance | 150 | |
Charge-offs | (84) | |
Recoveries | 17 | |
Provision | 23 | |
ACL - Loans, Ending balance | 73 | 150 |
Other | Adoption (adjustments) | ||
Loans | ||
ACL - Loans, Beginning balance | $ (33) | |
ACL - Loans, Ending balance | $ (33) |
Loans - Rollforward of activi_2
Loans - Rollforward of activity in the ALL (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Loans | |
ALL - Beginning Balance | $ 20,315 |
Charge-offs | (1,005) |
Recoveries | 1,170 |
Provision | 2,200 |
ALL - Ending Balance | 22,680 |
ALL ending balance individually evaluated for impairment | 8 |
ALL ending balance collectively evaluated for impairment | 22,672 |
Loans outstanding - Ending Balance | 2,894,809 |
Loans ending balance individually evaluated for impairment | 3,486 |
Loans ending balance collectively evaluated for impairment | 2,891,323 |
Commercial/Industrial | |
Loans | |
ALL - Beginning Balance | 3,699 |
Recoveries | 499 |
Provision | (127) |
ALL - Ending Balance | 4,071 |
ALL ending balance collectively evaluated for impairment | 4,071 |
Loans outstanding - Ending Balance | 492,563 |
Loans ending balance individually evaluated for impairment | 284 |
Loans ending balance collectively evaluated for impairment | 492,279 |
Commercial real estate-owner occupied | |
Loans | |
ALL - Beginning Balance | 5,633 |
Charge-offs | (890) |
Recoveries | 74 |
Provision | 387 |
ALL - Ending Balance | 5,204 |
ALL ending balance collectively evaluated for impairment | 5,204 |
Loans outstanding - Ending Balance | 717,401 |
Loans ending balance individually evaluated for impairment | 2,487 |
Loans ending balance collectively evaluated for impairment | 714,914 |
Commercial real estate - non-owner occupied | |
Loans | |
ALL - Beginning Balance | 3,123 |
Recoveries | 360 |
Provision | (106) |
ALL - Ending Balance | 3,377 |
ALL ending balance individually evaluated for impairment | 8 |
ALL ending balance collectively evaluated for impairment | 3,369 |
Loans outstanding - Ending Balance | 391,133 |
Loans ending balance individually evaluated for impairment | 514 |
Loans ending balance collectively evaluated for impairment | 390,619 |
Multi-family | |
Loans | |
ALL - Beginning Balance | 2,028 |
ALL - Ending Balance | 2,028 |
ALL ending balance collectively evaluated for impairment | 2,028 |
Loans outstanding - Ending Balance | 290,650 |
Loans ending balance collectively evaluated for impairment | 290,650 |
Construction and development | |
Loans | |
ALL - Beginning Balance | 984 |
Recoveries | 152 |
Provision | 456 |
ALL - Ending Balance | 1,592 |
ALL ending balance collectively evaluated for impairment | 1,592 |
Loans outstanding - Ending Balance | 200,022 |
Loans ending balance collectively evaluated for impairment | 200,022 |
Residential 1-4 Family | |
Loans | |
ALL - Beginning Balance | 4,445 |
Charge-offs | (40) |
Recoveries | 14 |
Provision | 1,525 |
ALL - Ending Balance | 5,944 |
ALL ending balance collectively evaluated for impairment | 5,944 |
Loans outstanding - Ending Balance | 739,339 |
Loans ending balance individually evaluated for impairment | 201 |
Loans ending balance collectively evaluated for impairment | 739,138 |
Consumer | |
Loans | |
ALL - Beginning Balance | 224 |
Charge-offs | (27) |
Recoveries | 6 |
Provision | 111 |
ALL - Ending Balance | 314 |
ALL ending balance collectively evaluated for impairment | 314 |
Loans outstanding - Ending Balance | 44,796 |
Loans ending balance collectively evaluated for impairment | 44,796 |
Other | |
Loans | |
ALL - Beginning Balance | 179 |
Charge-offs | (48) |
Recoveries | 65 |
Provision | (46) |
ALL - Ending Balance | 150 |
ALL ending balance collectively evaluated for impairment | 150 |
Loans outstanding - Ending Balance | 18,905 |
Loans ending balance collectively evaluated for impairment | $ 18,905 |
Loans - Provisions for credit l
Loans - Provisions for credit losses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Provision for credit losses on: | |||
Loans | $ 4,292,000 | $ 2,200,000 | |
Unfunded commitments | 390,000 | ||
Total provision for credit losses | 4,682,000 | 2,200,000 | $ 3,100,000 |
Other liabilities | |||
Loans | |||
Reserve for unfunded commitments | $ 3,849,000 | $ 0 |
Loans - Past due and non-accrua
Loans - Past due and non-accrual loans (Details) - Past Due - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans | ||
30-89 Days Past Due Accruing | $ 5,436 | |
90 Days or more Past Due and Accruing | 893 | |
Non-Accrual | 5,662 | |
Total | 11,991 | |
Non-Accrual with no specifically allocated ACL | 1,113 | |
30-89 Days Past Due Accruing | $ 2,523 | |
90 Days or more Past Due and Accruing | 273 | |
Non-Accrual | 3,628 | |
Total | 6,424 | |
Commercial/Industrial | ||
Loans | ||
30-89 Days Past Due Accruing | 4,303 | |
90 Days or more Past Due and Accruing | 106 | |
Non-Accrual | 1,344 | |
Total | 5,753 | |
Non-Accrual with no specifically allocated ACL | 365 | |
30-89 Days Past Due Accruing | 192 | |
Non-Accrual | 418 | |
Total | 610 | |
Commercial real estate-owner occupied | ||
Loans | ||
30-89 Days Past Due Accruing | 180 | |
90 Days or more Past Due and Accruing | 252 | |
Non-Accrual | 3,877 | |
Total | 4,309 | |
Non-Accrual with no specifically allocated ACL | 343 | |
30-89 Days Past Due Accruing | 1,301 | |
Non-Accrual | 2,688 | |
Total | 3,989 | |
Commercial real estate - non-owner occupied | ||
Loans | ||
30-89 Days Past Due Accruing | 14 | |
Total | 14 | |
Construction and development | ||
Loans | ||
30-89 Days Past Due Accruing | 237 | |
Non-Accrual | 17 | |
Total | 254 | |
Residential 1-4 Family | ||
Loans | ||
30-89 Days Past Due Accruing | 871 | |
90 Days or more Past Due and Accruing | 507 | |
Non-Accrual | 429 | |
Total | 1,807 | |
Non-Accrual with no specifically allocated ACL | 394 | |
30-89 Days Past Due Accruing | 774 | |
90 Days or more Past Due and Accruing | 268 | |
Non-Accrual | 505 | |
Total | 1,547 | |
Consumer | ||
Loans | ||
30-89 Days Past Due Accruing | 68 | |
90 Days or more Past Due and Accruing | 28 | |
Non-Accrual | 12 | |
Total | 108 | |
Non-Accrual with no specifically allocated ACL | $ 11 | |
30-89 Days Past Due Accruing | 19 | |
90 Days or more Past Due and Accruing | 5 | |
Total | $ 24 |
Loans - Collateral dependent lo
Loans - Collateral dependent loans (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Loans | |
Without an Allowance | $ 876 |
With an Allowance | 12,610 |
Allowance Allocation | 4,245 |
Total | |
Loans | |
Collateral dependent loans | 13,486 |
Real Estate | |
Loans | |
Collateral dependent loans | 8,166 |
Other Business Assets | |
Loans | |
Collateral dependent loans | 5,320 |
Commercial/Industrial | |
Loans | |
Without an Allowance | 47 |
With an Allowance | 5,273 |
Allowance Allocation | 1,089 |
Commercial/Industrial | Total | |
Loans | |
Collateral dependent loans | 5,320 |
Commercial/Industrial | Other Business Assets | |
Loans | |
Collateral dependent loans | 5,320 |
Commercial real estate-owner occupied | |
Loans | |
Without an Allowance | 794 |
With an Allowance | 7,337 |
Allowance Allocation | 3,156 |
Commercial real estate-owner occupied | Total | |
Loans | |
Collateral dependent loans | 8,131 |
Commercial real estate-owner occupied | Real Estate | |
Loans | |
Collateral dependent loans | 8,131 |
Residential 1-4 Family | |
Loans | |
Without an Allowance | 35 |
Residential 1-4 Family | Total | |
Loans | |
Collateral dependent loans | 35 |
Residential 1-4 Family | Real Estate | |
Loans | |
Collateral dependent loans | $ 35 |
Loans - Summary of impaired loa
Loans - Summary of impaired loans individually evaluated (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
With an allowance recorded: | |
Recorded investment | $ 18 |
Unpaid principal balance | 18 |
Related allowance | 8 |
With no related allowance recorded: | |
Recorded investment | 3,468 |
Unpaid principal balance | 3,468 |
Total: | |
Recorded investment | 3,486 |
Unpaid Principal Balance | 3,486 |
Related allowance | 8 |
Average recorded investment | 5,341 |
Commercial/Industrial | |
With no related allowance recorded: | |
Recorded investment | 284 |
Unpaid principal balance | 284 |
Total: | |
Recorded investment | 284 |
Unpaid Principal Balance | 284 |
Average recorded investment | 361 |
Commercial real estate-owner occupied | |
With no related allowance recorded: | |
Recorded investment | 2,487 |
Unpaid principal balance | 2,487 |
Total: | |
Recorded investment | 2,487 |
Unpaid Principal Balance | 2,487 |
Average recorded investment | 3,726 |
Commercial real estate - non-owner occupied | |
With an allowance recorded: | |
Recorded investment | 18 |
Unpaid principal balance | 18 |
Related allowance | 8 |
With no related allowance recorded: | |
Recorded investment | 497 |
Unpaid principal balance | 497 |
Total: | |
Recorded investment | 515 |
Unpaid Principal Balance | 515 |
Related allowance | 8 |
Average recorded investment | 1,017 |
Residential 1-4 Family | |
With no related allowance recorded: | |
Recorded investment | 200 |
Unpaid principal balance | 200 |
Total: | |
Recorded investment | 200 |
Unpaid Principal Balance | 200 |
Average recorded investment | $ 237 |
Loans - Total loans by risk rat
Loans - Total loans by risk ratings and year of origination (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans | ||
Total loans | $ 3,345,219 | $ 2,894,809 |
Current-period gross charge-offs | 88 | |
2032 | ||
Loans | ||
Total loans | 422,660 | |
2022 | ||
Loans | ||
Total loans | 673,206 | |
2021 | ||
Loans | ||
Total loans | 781,990 | |
2020 | ||
Loans | ||
Total loans | 489,813 | |
2019 | ||
Loans | ||
Total loans | 208,380 | |
Prior to 2019 | ||
Loans | ||
Total loans | 508,205 | |
Revolving | ||
Loans | ||
Total loans | 260,965 | |
Current-period gross charge-offs | 88 | |
Commercial/Industrial | ||
Loans | ||
Total loans | 488,498 | 492,563 |
Commercial/Industrial | 2032 | ||
Loans | ||
Total loans | 66,689 | |
Commercial/Industrial | 2022 | ||
Loans | ||
Total loans | 139,200 | |
Commercial/Industrial | 2021 | ||
Loans | ||
Total loans | 80,352 | |
Commercial/Industrial | 2020 | ||
Loans | ||
Total loans | 61,317 | |
Commercial/Industrial | 2019 | ||
Loans | ||
Total loans | 11,590 | |
Commercial/Industrial | Prior to 2019 | ||
Loans | ||
Total loans | 25,301 | |
Commercial/Industrial | Revolving | ||
Loans | ||
Total loans | 104,049 | |
Commercial/Industrial | Grades 1-4 | ||
Loans | ||
Total loans | 419,835 | |
Commercial/Industrial | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 59,526 | |
Commercial/Industrial | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 133,469 | |
Commercial/Industrial | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 62,894 | |
Commercial/Industrial | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 54,552 | |
Commercial/Industrial | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 10,380 | |
Commercial/Industrial | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 20,575 | |
Commercial/Industrial | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 78,439 | |
Commercial/Industrial | Grade 5 | ||
Loans | ||
Total loans | 52,982 | |
Commercial/Industrial | Grade 5 | 2032 | ||
Loans | ||
Total loans | 6,127 | |
Commercial/Industrial | Grade 5 | 2022 | ||
Loans | ||
Total loans | 5,367 | |
Commercial/Industrial | Grade 5 | 2021 | ||
Loans | ||
Total loans | 11,641 | |
Commercial/Industrial | Grade 5 | 2020 | ||
Loans | ||
Total loans | 4,208 | |
Commercial/Industrial | Grade 5 | 2019 | ||
Loans | ||
Total loans | 1,180 | |
Commercial/Industrial | Grade 5 | Prior to 2019 | ||
Loans | ||
Total loans | 3,039 | |
Commercial/Industrial | Grade 5 | Revolving | ||
Loans | ||
Total loans | 21,420 | |
Commercial/Industrial | Grade 6 | ||
Loans | ||
Total loans | 1,658 | |
Commercial/Industrial | Grade 6 | 2032 | ||
Loans | ||
Total loans | 671 | |
Commercial/Industrial | Grade 6 | 2022 | ||
Loans | ||
Total loans | 93 | |
Commercial/Industrial | Grade 6 | 2021 | ||
Loans | ||
Total loans | 61 | |
Commercial/Industrial | Grade 6 | 2020 | ||
Loans | ||
Total loans | 206 | |
Commercial/Industrial | Grade 6 | Revolving | ||
Loans | ||
Total loans | 627 | |
Commercial/Industrial | Grade 7 | ||
Loans | ||
Total loans | 14,023 | |
Commercial/Industrial | Grade 7 | 2032 | ||
Loans | ||
Total loans | 365 | |
Commercial/Industrial | Grade 7 | 2022 | ||
Loans | ||
Total loans | 271 | |
Commercial/Industrial | Grade 7 | 2021 | ||
Loans | ||
Total loans | 5,756 | |
Commercial/Industrial | Grade 7 | 2020 | ||
Loans | ||
Total loans | 2,351 | |
Commercial/Industrial | Grade 7 | 2019 | ||
Loans | ||
Total loans | 30 | |
Commercial/Industrial | Grade 7 | Prior to 2019 | ||
Loans | ||
Total loans | 1,687 | |
Commercial/Industrial | Grade 7 | Revolving | ||
Loans | ||
Total loans | 3,563 | |
Commercial real estate-owner occupied | ||
Loans | ||
Total loans | 893,977 | 717,401 |
Commercial real estate-owner occupied | 2032 | ||
Loans | ||
Total loans | 65,968 | |
Commercial real estate-owner occupied | 2022 | ||
Loans | ||
Total loans | 141,070 | |
Commercial real estate-owner occupied | 2021 | ||
Loans | ||
Total loans | 203,769 | |
Commercial real estate-owner occupied | 2020 | ||
Loans | ||
Total loans | 124,058 | |
Commercial real estate-owner occupied | 2019 | ||
Loans | ||
Total loans | 73,925 | |
Commercial real estate-owner occupied | Prior to 2019 | ||
Loans | ||
Total loans | 227,094 | |
Commercial real estate-owner occupied | Revolving | ||
Loans | ||
Total loans | 58,093 | |
Commercial real estate-owner occupied | Grades 1-4 | ||
Loans | ||
Total loans | 695,151 | |
Commercial real estate-owner occupied | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 55,239 | |
Commercial real estate-owner occupied | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 105,187 | |
Commercial real estate-owner occupied | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 167,124 | |
Commercial real estate-owner occupied | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 108,680 | |
Commercial real estate-owner occupied | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 47,115 | |
Commercial real estate-owner occupied | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 178,586 | |
Commercial real estate-owner occupied | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 33,220 | |
Commercial real estate-owner occupied | Grade 5 | ||
Loans | ||
Total loans | 129,031 | |
Commercial real estate-owner occupied | Grade 5 | 2032 | ||
Loans | ||
Total loans | 7,586 | |
Commercial real estate-owner occupied | Grade 5 | 2022 | ||
Loans | ||
Total loans | 24,734 | |
Commercial real estate-owner occupied | Grade 5 | 2021 | ||
Loans | ||
Total loans | 24,890 | |
Commercial real estate-owner occupied | Grade 5 | 2020 | ||
Loans | ||
Total loans | 12,955 | |
Commercial real estate-owner occupied | Grade 5 | 2019 | ||
Loans | ||
Total loans | 11,168 | |
Commercial real estate-owner occupied | Grade 5 | Prior to 2019 | ||
Loans | ||
Total loans | 26,179 | |
Commercial real estate-owner occupied | Grade 5 | Revolving | ||
Loans | ||
Total loans | 21,519 | |
Commercial real estate-owner occupied | Grade 6 | ||
Loans | ||
Total loans | 11,083 | |
Commercial real estate-owner occupied | Grade 6 | 2022 | ||
Loans | ||
Total loans | 1,161 | |
Commercial real estate-owner occupied | Grade 6 | 2021 | ||
Loans | ||
Total loans | 1,694 | |
Commercial real estate-owner occupied | Grade 6 | 2020 | ||
Loans | ||
Total loans | 110 | |
Commercial real estate-owner occupied | Grade 6 | 2019 | ||
Loans | ||
Total loans | 867 | |
Commercial real estate-owner occupied | Grade 6 | Prior to 2019 | ||
Loans | ||
Total loans | 6,552 | |
Commercial real estate-owner occupied | Grade 6 | Revolving | ||
Loans | ||
Total loans | 699 | |
Commercial real estate-owner occupied | Grade 7 | ||
Loans | ||
Total loans | 58,712 | |
Commercial real estate-owner occupied | Grade 7 | 2032 | ||
Loans | ||
Total loans | 3,143 | |
Commercial real estate-owner occupied | Grade 7 | 2022 | ||
Loans | ||
Total loans | 9,988 | |
Commercial real estate-owner occupied | Grade 7 | 2021 | ||
Loans | ||
Total loans | 10,061 | |
Commercial real estate-owner occupied | Grade 7 | 2020 | ||
Loans | ||
Total loans | 2,313 | |
Commercial real estate-owner occupied | Grade 7 | 2019 | ||
Loans | ||
Total loans | 14,775 | |
Commercial real estate-owner occupied | Grade 7 | Prior to 2019 | ||
Loans | ||
Total loans | 15,777 | |
Commercial real estate-owner occupied | Grade 7 | Revolving | ||
Loans | ||
Total loans | 2,655 | |
Commercial real estate - non-owner occupied | ||
Loans | ||
Total loans | 473,829 | 391,133 |
Commercial real estate - non-owner occupied | 2032 | ||
Loans | ||
Total loans | 55,718 | |
Commercial real estate - non-owner occupied | 2022 | ||
Loans | ||
Total loans | 77,155 | |
Commercial real estate - non-owner occupied | 2021 | ||
Loans | ||
Total loans | 130,386 | |
Commercial real estate - non-owner occupied | 2020 | ||
Loans | ||
Total loans | 57,223 | |
Commercial real estate - non-owner occupied | 2019 | ||
Loans | ||
Total loans | 48,717 | |
Commercial real estate - non-owner occupied | Prior to 2019 | ||
Loans | ||
Total loans | 94,760 | |
Commercial real estate - non-owner occupied | Revolving | ||
Loans | ||
Total loans | 9,870 | |
Commercial real estate - non-owner occupied | Grades 1-4 | ||
Loans | ||
Total loans | 447,798 | |
Commercial real estate - non-owner occupied | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 54,774 | |
Commercial real estate - non-owner occupied | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 72,336 | |
Commercial real estate - non-owner occupied | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 127,450 | |
Commercial real estate - non-owner occupied | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 53,341 | |
Commercial real estate - non-owner occupied | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 45,898 | |
Commercial real estate - non-owner occupied | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 84,129 | |
Commercial real estate - non-owner occupied | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 9,870 | |
Commercial real estate - non-owner occupied | Grade 5 | ||
Loans | ||
Total loans | 22,329 | |
Commercial real estate - non-owner occupied | Grade 5 | 2032 | ||
Loans | ||
Total loans | 944 | |
Commercial real estate - non-owner occupied | Grade 5 | 2022 | ||
Loans | ||
Total loans | 4,819 | |
Commercial real estate - non-owner occupied | Grade 5 | 2021 | ||
Loans | ||
Total loans | 2,872 | |
Commercial real estate - non-owner occupied | Grade 5 | 2020 | ||
Loans | ||
Total loans | 3,516 | |
Commercial real estate - non-owner occupied | Grade 5 | 2019 | ||
Loans | ||
Total loans | 97 | |
Commercial real estate - non-owner occupied | Grade 5 | Prior to 2019 | ||
Loans | ||
Total loans | 10,081 | |
Commercial real estate - non-owner occupied | Grade 7 | ||
Loans | ||
Total loans | 3,702 | |
Commercial real estate - non-owner occupied | Grade 7 | 2021 | ||
Loans | ||
Total loans | 64 | |
Commercial real estate - non-owner occupied | Grade 7 | 2020 | ||
Loans | ||
Total loans | 366 | |
Commercial real estate - non-owner occupied | Grade 7 | 2019 | ||
Loans | ||
Total loans | 2,722 | |
Commercial real estate - non-owner occupied | Grade 7 | Prior to 2019 | ||
Loans | ||
Total loans | 550 | |
Multi-family | ||
Loans | ||
Total loans | 332,959 | 290,650 |
Multi-family | 2032 | ||
Loans | ||
Total loans | 25,771 | |
Multi-family | 2022 | ||
Loans | ||
Total loans | 29,236 | |
Multi-family | 2021 | ||
Loans | ||
Total loans | 114,464 | |
Multi-family | 2020 | ||
Loans | ||
Total loans | 74,083 | |
Multi-family | 2019 | ||
Loans | ||
Total loans | 25,640 | |
Multi-family | Prior to 2019 | ||
Loans | ||
Total loans | 61,616 | |
Multi-family | Revolving | ||
Loans | ||
Total loans | 2,149 | |
Multi-family | Grades 1-4 | ||
Loans | ||
Total loans | 320,508 | |
Multi-family | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 25,099 | |
Multi-family | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 28,144 | |
Multi-family | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 103,804 | |
Multi-family | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 74,083 | |
Multi-family | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 25,640 | |
Multi-family | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 61,589 | |
Multi-family | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 2,149 | |
Multi-family | Grade 5 | ||
Loans | ||
Total loans | 12,451 | |
Multi-family | Grade 5 | 2032 | ||
Loans | ||
Total loans | 672 | |
Multi-family | Grade 5 | 2022 | ||
Loans | ||
Total loans | 1,092 | |
Multi-family | Grade 5 | 2021 | ||
Loans | ||
Total loans | 10,660 | |
Multi-family | Grade 5 | Prior to 2019 | ||
Loans | ||
Total loans | 27 | |
Construction and development | ||
Loans | ||
Total loans | 201,823 | 200,022 |
Construction and development | 2032 | ||
Loans | ||
Total loans | 77,637 | |
Construction and development | 2022 | ||
Loans | ||
Total loans | 68,586 | |
Construction and development | 2021 | ||
Loans | ||
Total loans | 41,077 | |
Construction and development | 2020 | ||
Loans | ||
Total loans | 5,928 | |
Construction and development | 2019 | ||
Loans | ||
Total loans | 1,853 | |
Construction and development | Prior to 2019 | ||
Loans | ||
Total loans | 5,155 | |
Construction and development | Revolving | ||
Loans | ||
Total loans | 1,587 | |
Construction and development | Grades 1-4 | ||
Loans | ||
Total loans | 179,473 | |
Construction and development | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 65,134 | |
Construction and development | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 67,396 | |
Construction and development | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 35,017 | |
Construction and development | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 5,013 | |
Construction and development | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 1,853 | |
Construction and development | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 4,281 | |
Construction and development | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 779 | |
Construction and development | Grade 5 | ||
Loans | ||
Total loans | 20,681 | |
Construction and development | Grade 5 | 2032 | ||
Loans | ||
Total loans | 11,796 | |
Construction and development | Grade 5 | 2022 | ||
Loans | ||
Total loans | 1,190 | |
Construction and development | Grade 5 | 2021 | ||
Loans | ||
Total loans | 6,060 | |
Construction and development | Grade 5 | 2020 | ||
Loans | ||
Total loans | 743 | |
Construction and development | Grade 5 | Prior to 2019 | ||
Loans | ||
Total loans | 84 | |
Construction and development | Grade 5 | Revolving | ||
Loans | ||
Total loans | 808 | |
Construction and development | Grade 7 | ||
Loans | ||
Total loans | 1,669 | |
Construction and development | Grade 7 | 2032 | ||
Loans | ||
Total loans | 707 | |
Construction and development | Grade 7 | 2020 | ||
Loans | ||
Total loans | 172 | |
Construction and development | Grade 7 | Prior to 2019 | ||
Loans | ||
Total loans | 790 | |
Residential 1-4 Family | ||
Loans | ||
Total loans | 888,412 | 739,339 |
Residential 1-4 Family | 2032 | ||
Loans | ||
Total loans | 106,819 | |
Residential 1-4 Family | 2022 | ||
Loans | ||
Total loans | 204,799 | |
Residential 1-4 Family | 2021 | ||
Loans | ||
Total loans | 204,821 | |
Residential 1-4 Family | 2020 | ||
Loans | ||
Total loans | 161,630 | |
Residential 1-4 Family | 2019 | ||
Loans | ||
Total loans | 45,423 | |
Residential 1-4 Family | Prior to 2019 | ||
Loans | ||
Total loans | 83,236 | |
Residential 1-4 Family | Revolving | ||
Loans | ||
Total loans | 81,684 | |
Residential 1-4 Family | Grades 1-4 | ||
Loans | ||
Total loans | 862,740 | |
Residential 1-4 Family | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 102,529 | |
Residential 1-4 Family | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 199,295 | |
Residential 1-4 Family | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 197,713 | |
Residential 1-4 Family | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 160,489 | |
Residential 1-4 Family | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 44,411 | |
Residential 1-4 Family | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 77,644 | |
Residential 1-4 Family | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 80,659 | |
Residential 1-4 Family | Grade 5 | ||
Loans | ||
Total loans | 18,704 | |
Residential 1-4 Family | Grade 5 | 2032 | ||
Loans | ||
Total loans | 3,816 | |
Residential 1-4 Family | Grade 5 | 2022 | ||
Loans | ||
Total loans | 4,819 | |
Residential 1-4 Family | Grade 5 | 2021 | ||
Loans | ||
Total loans | 6,269 | |
Residential 1-4 Family | Grade 5 | 2020 | ||
Loans | ||
Total loans | 119 | |
Residential 1-4 Family | Grade 5 | 2019 | ||
Loans | ||
Total loans | 612 | |
Residential 1-4 Family | Grade 5 | Prior to 2019 | ||
Loans | ||
Total loans | 2,465 | |
Residential 1-4 Family | Grade 5 | Revolving | ||
Loans | ||
Total loans | 604 | |
Residential 1-4 Family | Grade 6 | ||
Loans | ||
Total loans | 1,716 | |
Residential 1-4 Family | Grade 6 | 2032 | ||
Loans | ||
Total loans | 158 | |
Residential 1-4 Family | Grade 6 | 2022 | ||
Loans | ||
Total loans | 319 | |
Residential 1-4 Family | Grade 6 | 2021 | ||
Loans | ||
Total loans | 810 | |
Residential 1-4 Family | Grade 6 | Prior to 2019 | ||
Loans | ||
Total loans | 180 | |
Residential 1-4 Family | Grade 6 | Revolving | ||
Loans | ||
Total loans | 249 | |
Residential 1-4 Family | Grade 7 | ||
Loans | ||
Total loans | 5,252 | |
Residential 1-4 Family | Grade 7 | 2032 | ||
Loans | ||
Total loans | 316 | |
Residential 1-4 Family | Grade 7 | 2022 | ||
Loans | ||
Total loans | 366 | |
Residential 1-4 Family | Grade 7 | 2021 | ||
Loans | ||
Total loans | 29 | |
Residential 1-4 Family | Grade 7 | 2020 | ||
Loans | ||
Total loans | 1,022 | |
Residential 1-4 Family | Grade 7 | 2019 | ||
Loans | ||
Total loans | 400 | |
Residential 1-4 Family | Grade 7 | Prior to 2019 | ||
Loans | ||
Total loans | 2,947 | |
Residential 1-4 Family | Grade 7 | Revolving | ||
Loans | ||
Total loans | 172 | |
Consumer | ||
Loans | ||
Total loans | 50,741 | 44,796 |
Current-period gross charge-offs | 4 | |
Consumer | 2032 | ||
Loans | ||
Total loans | 23,711 | |
Consumer | 2022 | ||
Loans | ||
Total loans | 12,497 | |
Consumer | 2021 | ||
Loans | ||
Total loans | 6,570 | |
Consumer | 2020 | ||
Loans | ||
Total loans | 4,498 | |
Consumer | 2019 | ||
Loans | ||
Total loans | 1,194 | |
Consumer | Prior to 2019 | ||
Loans | ||
Total loans | 1,346 | |
Consumer | Revolving | ||
Loans | ||
Total loans | 925 | |
Current-period gross charge-offs | 4 | |
Consumer | Grades 1-4 | ||
Loans | ||
Total loans | 50,721 | |
Consumer | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 23,711 | |
Consumer | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 12,497 | |
Consumer | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 6,570 | |
Consumer | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 4,498 | |
Consumer | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 1,194 | |
Consumer | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 1,326 | |
Consumer | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 925 | |
Consumer | Grade 7 | ||
Loans | ||
Total loans | 20 | |
Consumer | Grade 7 | Prior to 2019 | ||
Loans | ||
Total loans | 20 | |
Other | ||
Loans | ||
Total loans | 14,980 | $ 18,905 |
Current-period gross charge-offs | 84 | |
Other | 2032 | ||
Loans | ||
Total loans | 347 | |
Other | 2022 | ||
Loans | ||
Total loans | 663 | |
Other | 2021 | ||
Loans | ||
Total loans | 551 | |
Other | 2020 | ||
Loans | ||
Total loans | 1,076 | |
Other | 2019 | ||
Loans | ||
Total loans | 38 | |
Other | Prior to 2019 | ||
Loans | ||
Total loans | 9,697 | |
Other | Revolving | ||
Loans | ||
Total loans | 2,608 | |
Current-period gross charge-offs | 84 | |
Other | Grades 1-4 | ||
Loans | ||
Total loans | 14,892 | |
Other | Grades 1-4 | 2032 | ||
Loans | ||
Total loans | 347 | |
Other | Grades 1-4 | 2022 | ||
Loans | ||
Total loans | 663 | |
Other | Grades 1-4 | 2021 | ||
Loans | ||
Total loans | 551 | |
Other | Grades 1-4 | 2020 | ||
Loans | ||
Total loans | 1,076 | |
Other | Grades 1-4 | 2019 | ||
Loans | ||
Total loans | 38 | |
Other | Grades 1-4 | Prior to 2019 | ||
Loans | ||
Total loans | 9,697 | |
Other | Grades 1-4 | Revolving | ||
Loans | ||
Total loans | 2,520 | |
Other | Grade 5 | ||
Loans | ||
Total loans | 88 | |
Other | Grade 5 | Revolving | ||
Loans | ||
Total loans | $ 88 |
Loans - Breakdown of loans by r
Loans - Breakdown of loans by risk rating (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Loans | |
Gross loans | $ 2,894,809 |
Commercial/Industrial | |
Loans | |
Gross loans | 492,563 |
Commercial real estate-owner occupied | |
Loans | |
Gross loans | 717,401 |
Commercial real estate - non-owner occupied | |
Loans | |
Gross loans | 391,133 |
Commercial real estate - multi-family | |
Loans | |
Gross loans | 290,650 |
Construction and development | |
Loans | |
Gross loans | 200,022 |
Residential 1-4 Family | |
Loans | |
Gross loans | 739,339 |
Consumer | |
Loans | |
Gross loans | 44,796 |
Other | |
Loans | |
Gross loans | 18,905 |
Risk Rating, Pass (1-5) | |
Loans | |
Gross loans | 2,817,154 |
Risk Rating, Pass (1-5) | Commercial/Industrial | |
Loans | |
Gross loans | 474,699 |
Risk Rating, Pass (1-5) | Commercial real estate-owner occupied | |
Loans | |
Gross loans | 666,424 |
Risk Rating, Pass (1-5) | Commercial real estate - non-owner occupied | |
Loans | |
Gross loans | 386,816 |
Risk Rating, Pass (1-5) | Commercial real estate - multi-family | |
Loans | |
Gross loans | 290,650 |
Risk Rating, Pass (1-5) | Construction and development | |
Loans | |
Gross loans | 198,895 |
Risk Rating, Pass (1-5) | Residential 1-4 Family | |
Loans | |
Gross loans | 735,971 |
Risk Rating, Pass (1-5) | Consumer | |
Loans | |
Gross loans | 44,794 |
Risk Rating, Pass (1-5) | Other | |
Loans | |
Gross loans | 18,905 |
Risk Rating, 6 | |
Loans | |
Gross loans | 11,890 |
Risk Rating, 6 | Commercial/Industrial | |
Loans | |
Gross loans | 3,708 |
Risk Rating, 6 | Commercial real estate-owner occupied | |
Loans | |
Gross loans | 8,031 |
Risk Rating, 6 | Residential 1-4 Family | |
Loans | |
Gross loans | 151 |
Risk Rating, 7 | |
Loans | |
Gross loans | 65,765 |
Risk Rating, 7 | Commercial/Industrial | |
Loans | |
Gross loans | 14,156 |
Risk Rating, 7 | Commercial real estate-owner occupied | |
Loans | |
Gross loans | 42,946 |
Risk Rating, 7 | Commercial real estate - non-owner occupied | |
Loans | |
Gross loans | 4,317 |
Risk Rating, 7 | Construction and development | |
Loans | |
Gross loans | 1,127 |
Risk Rating, 7 | Residential 1-4 Family | |
Loans | |
Gross loans | 3,217 |
Risk Rating, 7 | Consumer | |
Loans | |
Gross loans | $ 2 |
Loans - Loans acquired with det
Loans - Loans acquired with deteriorated credit quality (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Loans | |
Recorded investment | $ 3,486 |
Unpaid Principal Balance | 3,486 |
Financial Asset Acquired with Credit Deterioration | |
Loans | |
Recorded investment | 4,075 |
Unpaid Principal Balance | 4,979 |
Commercial/Industrial | |
Loans | |
Recorded investment | 284 |
Unpaid Principal Balance | 284 |
Commercial/Industrial | Financial Asset Acquired with Credit Deterioration | |
Loans | |
Recorded investment | 712 |
Unpaid Principal Balance | 1,091 |
Commercial real estate-owner occupied | |
Loans | |
Recorded investment | 2,487 |
Unpaid Principal Balance | 2,487 |
Commercial real estate-owner occupied | Financial Asset Acquired with Credit Deterioration | |
Loans | |
Recorded investment | 2,539 |
Unpaid Principal Balance | 2,843 |
Commercial real estate - non-owner occupied | |
Loans | |
Recorded investment | 515 |
Unpaid Principal Balance | 515 |
Residential 1-4 Family | |
Loans | |
Recorded investment | 200 |
Unpaid Principal Balance | 200 |
Residential 1-4 Family | Financial Asset Acquired with Credit Deterioration | |
Loans | |
Recorded investment | 824 |
Unpaid Principal Balance | $ 1,045 |
Loans - Change in the accretabl
Loans - Change in the accretable and non-accretable components of discounts on loans acquired with deteriorated credit quality (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accretable discount | |
Loans | |
Balance at beginning of period | $ 813 |
Acquired balance, net | 292 |
Reclassifications between accretable and non-accretable | 135 |
Accretion to loan interest income | (561) |
Balance at end of period | 679 |
Non-accretable discount | |
Loans | |
Balance at beginning of period | 149 |
Acquired balance, net | 211 |
Reclassifications between accretable and non-accretable | (135) |
Balance at end of period | $ 225 |
Related Party Matters (Details)
Related Party Matters (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Matters | ||
Balances at beginning | $ 70,151,000 | $ 73,498,000 |
New loans and advances | 24,495,000 | 46,528,000 |
Repayments | (30,754,000) | (49,875,000) |
Balance at end | 63,892,000 | 70,151,000 |
Deposits from directors, executive officers, principal shareholders, and their affiliates | $ 19,073,000 | $ 27,524,000 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) M | Dec. 31, 2022 USD ($) M | |
Mortgage Servicing Rights | ||
Fair value at beginning of period | $ 9,582 | $ 5,016 |
Servicing asset additions | 879 | 771 |
Loan payments and payoffs | (1,624) | (918) |
Changes in valuation inputs and assumptions used in the valuation model | 1,140 | 3,012 |
Amount recognized through earnings | 395 | 2,865 |
MSR asset acquired | 3,691 | 1,701 |
Fair value at end of period | 13,668 | 9,582 |
Unpaid principal balance of loans serviced for others | $ 1,175,709 | $ 866,941 |
Mortgage servicing rights as a percent of loans serviced for others | 1.16% | 1.11% |
Measurement Input, Prepayment Rate | ||
Mortgage Servicing Rights | ||
MSR asset, measurement input | M | 7.5 | 7.5 |
Measurement Input, Discount Rate | ||
Mortgage Servicing Rights | ||
MSR asset, measurement input | 0.1019 | 0.1021 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premises and Equipment | |||
Premises and equipment, gross | $ 81,553,000 | $ 66,249,000 | |
Less accumulated depreciation | 13,245,000 | 11,383,000 | |
Right-of-use lease asset | $ 1,583,000 | $ 1,582,000 | |
Right-of-use lease asset, Statement of Financial Position | Premises and equipment, net, Total | Premises and equipment, net, Total | |
Premises and equipment, net, Total | $ 69,891,000 | $ 56,448,000 | |
Depreciation and amortization expense | 2,073,000 | 1,657,000 | $ 1,778,000 |
Land and land improvements | |||
Premises and Equipment | |||
Premises and equipment, gross | 13,594,000 | 9,539,000 | |
Buildings and improvements | |||
Premises and Equipment | |||
Premises and equipment, gross | 60,790,000 | 50,215,000 | |
Construction in progress | |||
Premises and Equipment | |||
Premises and equipment, gross | 5,743,000 | 190,000 | |
Furniture, fixtures and equipment | |||
Premises and Equipment | |||
Premises and equipment, gross | $ 7,169,000 | $ 6,495,000 |
Other Real Estate Owned - Chang
Other Real Estate Owned - Changes in OREO (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Real Estate Owned | ||
OREO, Beginning of year | $ 2,520 | $ 150 |
Transfers in | 2,623 | 1,139 |
Assets Acquired | 1,390 | 1,405 |
(Loss) gain on sale of OREO and valuation allowance | (2,133) | 146 |
Sales | (1,827) | (320) |
OREO, End of year | $ 2,573 | $ 2,520 |
Other Real Estate Owned - Activ
Other Real Estate Owned - Activity in the valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Real Estate Owned | |||
Beginning of year | $ 187 | $ 112 | |
Additions charged to expense | 1,591 | 24 | 217 |
Valuation relieved due to sale of OREO | (211) | (142) | |
End of year | $ 1,591 | $ 187 |
Investment in Minority-owned _2
Investment in Minority-owned Subsidiaries (Details) - USD ($) | 12 Months Ended | |||
Oct. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment in Minority-owned Subsidiaries | ||||
Gain on sale of UFS | $ 38,904,000 | |||
Total assets | 4,221,842,000 | $ 3,660,432,000 | ||
Total liabilities | 3,602,044,000 | 3,207,329,000 | ||
Data processing service fees | 8,011,000 | 6,324,000 | $ 5,344,000 | |
UFS | ||||
Investment in Minority-owned Subsidiaries | ||||
Total assets | 31,309,000 | |||
Total liabilities | 6,680,000 | |||
Ansay | ||||
Investment in Minority-owned Subsidiaries | ||||
Total assets | 86,853,000 | 87,271,000 | ||
Total liabilities | 41,398,000 | 44,178,000 | ||
Balance outstanding | 0 | |||
Deposit assets | 11,498,000 | 10,797,000 | ||
Ansay | Term Loan | ||||
Investment in Minority-owned Subsidiaries | ||||
Balance outstanding | 19,731,000 | 19,838,000 | ||
Ansay | Revolving Credit Facility | ||||
Investment in Minority-owned Subsidiaries | ||||
Available credit | 18,000,000 | |||
Ansay | ||||
Investment in Minority-owned Subsidiaries | ||||
Equity method investments | 32,926,000 | 31,928,000 | ||
Undistributed earnings from equity method investment | 2,922,000 | 2,558,000 | 2,587,000 | |
Expenses for insurance consulting services and fidelity bond and commercial insurance coverage | 417,000 | 357,000 | 329,000 | |
Deferred income taxes from related party | 944,000 | 1,125,000 | ||
Dividends received | 1,924,000 | 1,960,000 | 1,840,000 | |
UFS | ||||
Investment in Minority-owned Subsidiaries | ||||
Gain on sale of UFS | $ 38,904,000 | |||
Equity method investments | 12,252,000 | |||
Undistributed earnings from equity method investment | 2,265,000 | 3,055,000 | 2,556,000 | |
Data processing service fees | 5,545,000 | 4,348,000 | 3,754,000 | |
Deferred income taxes from related party | 1,509,000 | |||
Dividends received | $ 1,747,000 | $ 2,408,000 | $ 2,646,000 | |
TVG | Ansay | ||||
Investment in Minority-owned Subsidiaries | ||||
Percentage of subsidiary interest in equity method investment | 40% | 40% | ||
Bank | ||||
Investment in Minority-owned Subsidiaries | ||||
Percentage of the Bank's ownership interest in equity-method investment | 49.80% | |||
Bank | UFS | ||||
Investment in Minority-owned Subsidiaries | ||||
Percentage of the Bank's ownership interest in equity-method investment | 49.80% |
Core Deposit Intangibles - Gros
Core Deposit Intangibles - Gross carrying amount and accumulated amortization (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Core Deposit Intangibles | |||
Amortization of Intangible Assets | $ 6,324,000 | $ 2,318,000 | $ 1,405,000 |
Core Deposits | |||
Core Deposit Intangibles | |||
Gross Carrying Amount | 40,240,000 | 23,979,000 | |
Intangible Accumulated Amortization | $ 13,244,000 | $ 7,150,000 |
Core Deposit Intangibles - Esti
Core Deposit Intangibles - Estimated future amortization expense (Details) - Core Deposits $ in Thousands | Dec. 31, 2023 USD ($) |
Core Deposit Intangibles | |
2024 | $ 5,793 |
2025 | 5,003 |
2026 | 4,297 |
2027 | 3,590 |
2028 | 2,884 |
Thereafter | 5,429 |
Total | $ 26,996 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill | ||
Goodwill | $ 175,106,000 | $ 110,206,000 |
Goodwill from acquisitions during the year | $ 64,911,000 |
Deposits - Composition of depos
Deposits - Composition of deposits (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deposits | ||
Noninterest-bearing demand deposits | $ 1,050,735,000 | $ 934,092,000 |
Interest-bearing demand deposits | 204,760,000 | 344,560,000 |
Savings deposits | 1,595,395,000 | 1,357,571,000 |
Time deposits | 581,283,000 | 417,285,000 |
Brokered certificates of deposit | 747,000 | 6,721,000 |
Total deposits | 3,432,920,000 | 3,060,229,000 |
Time deposits of $250,000 or more | $ 70,195,000 | $ 47,192,000 |
Deposits - Maturities of time d
Deposits - Maturities of time deposits (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits | |
2024 | $ 511,866 |
2025 | 47,987 |
2026 | 6,999 |
2027 | 2,560 |
2028 | 3,277 |
Thereafter | 9,341 |
Total | $ 582,030 |
Securities Sold Under Repurch_3
Securities Sold Under Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Securities Sold Under Repurchase Agreements | |||
Contractual maturity of repurchase agreements | 1 year | ||
Outstanding balance at the end of the year | $ 75,747 | $ 97,196 | $ 41,122 |
Weighted average interest rate at the end of the year | 5.31% | 4.31% | 0.02% |
Average balance during the year | $ 36,833 | $ 25,749 | $ 34,637 |
Average interest rate during the year | 4.92% | 2.11% | 0.03% |
Maximum month end balance during the year | $ 75,747 | $ 97,196 | $ 57,915 |
Notes Payable - FHLB advances (
Notes Payable - FHLB advances (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Notes Payable | ||
Notes payable, before adjustments | $ 35,508,000 | $ 1,915,000 |
Purchase accounting adjustment | (238,000) | 14,000 |
Total notes payable | $ 35,270,000 | $ 1,929,000 |
Fixed rate | Fixed rate, fixed term, Maturity 06/01/2023 | ||
Notes Payable | ||
Rate | 1.79% | |
Notes payable, before adjustments | $ 807,000 | |
Fixed rate | Fixed rate, fixed term, Maturity 11/21/2023 | ||
Notes Payable | ||
Rate | 3.06% | |
Notes payable, before adjustments | $ 600,000 | |
Fixed rate | Fixed rate, fixed term, Maturity 03/23/2026 | ||
Notes Payable | ||
Rate | 4.02% | |
Notes payable, before adjustments | $ 10,000,000 | |
Fixed rate | Fixed rate, putable, Maturity 05/26/2026 | ||
Notes Payable | ||
Rate | 1.95% | |
Notes payable, before adjustments | $ 5,000,000 | |
Fixed rate | Fixed rate, fixed term, Maturity 03/23/2027 | ||
Notes Payable | ||
Rate | 3.91% | |
Notes payable, before adjustments | $ 10,000,000 | |
Fixed rate | Fixed rate, fixed term, Maturity 03/23/2028 | ||
Notes Payable | ||
Rate | 3.85% | |
Notes payable, before adjustments | $ 10,000,000 | |
Fixed rate | Fixed rate, fixed term, Maturity 04/22/2030 | ||
Notes Payable | ||
Rate | 0% | 0% |
Notes payable, before adjustments | $ 508,000 | $ 508,000 |
Notes Payable - Future maturiti
Notes Payable - Future maturities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Notes Payable | ||
1 year or less | $ 1,407,000 | |
1 to 2 years | ||
2 to 3 years | 15,000,000 | |
3 to 4 years | 10,000,000 | |
4 to 5 years | 10,000,000 | |
Over 5 years | 508,000 | 508,000 |
Total | $ 35,508,000 | $ 1,915,000 |
Notes Payable - Additional Info
Notes Payable - Additional Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Notes Payable | ||
Loans available to be pledged as collateral on FHLB borrowings | $ 1,492,916,000 | $ 1,152,655,000 |
Loans qualified as eligible collateral | 841,765,000 | 668,328,000 |
FHLB stock owned | 5,056,000 | 4,645,000 |
Borrowing availability at the FHLB | 806,180,000 | 666,424,000 |
Line of credit | ||
Notes Payable | ||
Maximum borrowing capacity | 7,500,000 | |
Outstanding balance | $ 0 | $ 0 |
Subordinated Debt (Details)
Subordinated Debt (Details) | 1 Months Ended | ||||||
Aug. 31, 2022 | Jul. 31, 2020 USD ($) item | Sep. 30, 2017 USD ($) | Dec. 31, 2023 USD ($) | Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Subordinated Debt | |||||||
Outstanding balance | $ 12,000,000 | $ 23,500,000 | |||||
Subordinated Notes, September 2017 | |||||||
Subordinated Debt | |||||||
Number of banks participating in note agreement | 3 | ||||||
Outstanding balance | $ 11,500,000 | ||||||
Maturity term | 10 years | ||||||
Subordinated Notes, July 2020 | |||||||
Subordinated Debt | |||||||
Number of banks participating in note agreement | item | 2 | ||||||
Maximum borrowing capacity per bank | $ 6,000,000 | ||||||
Maximum borrowing capacity | $ 12,000,000 | ||||||
Outstanding balance | 6,000,000 | $ 6,000,000 | |||||
Maturity term | 10 years | ||||||
Interest at fixed rate (as a percent) | 5% | ||||||
Subordinated Notes, August 2022 | |||||||
Subordinated Debt | |||||||
Outstanding balance | $ 6,000,000 | $ 6,000,000 | |||||
Maturity term | 10 years | ||||||
Interest at fixed rate (as a percent) | 5.25% | ||||||
Subordinated Notes, Hometown Bancorp, Ltd. Capital Trust I and II | |||||||
Subordinated Debt | |||||||
Applicable discounts | $ 1,464,000 | ||||||
Tier 1 capital | 12,000,000 | ||||||
Subordinated Notes, Hometown Bancorp, Ltd. Capital Trust I | |||||||
Subordinated Debt | |||||||
Outstanding balance | 4,124,000 | ||||||
Subordinated Notes, Hometown Bancorp, Ltd. Capital Trust II | |||||||
Subordinated Debt | |||||||
Outstanding balance | $ 8,248,000 |
Income Taxes - Components of th
Income Taxes - Components of the provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax expense: | |||
Federal | $ 20,158 | $ 10,328 | $ 9,898 |
State | 3,399 | 4,960 | 4,626 |
Deferred tax benefit: | |||
Federal | (1,234) | (617) | (1) |
State | (490) | (252) | 0 |
Change in valuation allowance | 2,447 | 0 | 0 |
Total provision for income taxes | $ 24,280 | $ 14,419 | $ 14,523 |
Income Taxes - Tax rate reconci
Income Taxes - Tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Tax expense at statutory rate | $ 20,747 | $ 12,523 | $ 12,593 |
Increase (decrease) in taxes resulting from: | |||
Tax-exempt interest | (995) | (1,079) | (1,074) |
State taxes (net of federal benefit) | 2,685 | 3,719 | 3,666 |
Cash surrender value of life insurance | (322) | (194) | (161) |
ESOP dividend | (88) | (77) | (98) |
Nondeductible expenses associated with acquisition | 61 | 189 | 0 |
Change in valuation allowance | 2,447 | 0 | 0 |
Other | (255) | (662) | (403) |
Total provision for income taxes | $ 24,280 | $ 14,419 | $ 14,523 |
Income Taxes - Deferred tax (De
Income Taxes - Deferred tax (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Deferred compensation | $ 15,000 | $ 43,000 |
Premises and equipment | 357,000 | 439,000 |
Allowance for credit losses | 12,856,000 | 6,178,000 |
Accrued vacation and severance | 80,000 | 6,000 |
Other real estate owned | 262,000 | |
Purchase accounting | 3,855,000 | 2,152,000 |
Unrealized loss on securities available for sale | 3,375,000 | 5,757,000 |
Net operating loss carry forward | 592,000 | |
Other | 494,000 | 1,384,000 |
Total deferred tax assets | 21,886,000 | 15,959,000 |
Deferred tax liabilities: | ||
Investment in acquisition and discount accretion | (1,557,000) | (624,000) |
Mortgage servicing rights | (3,703,000) | (2,610,000) |
Other investments | (101,000) | (84,000) |
Investment in minority owned subsidiaries | (944,000) | (2,635,000) |
Goodwill and other intangibles | (6,591,000) | (5,341,000) |
Total deferred tax liabilities | (12,896,000) | (11,294,000) |
Valuation allowance | (2,447,000) | |
Net deferred tax asset | 6,543,000 | 4,665,000 |
Accrued liability for uncertain tax positions | $ 0 | $ 0 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Ownership Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plans | |||
Service period required prior to participation in ESOP | 3 months | 3 months | 3 months |
ESOP shares held | 272,132 | 322,020 | |
Employee contribution as a percentage of salary | 35% | 35% | 35% |
Additional discretionary contributions | $ 801,000 | $ 591,000 | $ 600,000 |
Total ESOP expense | $ 1,596,000 | $ 1,197,000 | $ 1,169,000 |
Minimum | |||
Employee Benefit Plans | |||
Employee contribution as a percentage of salary | 2% | 2% | 2% |
Maximum | |||
Employee Benefit Plans | |||
Discretionary match as a percentage of employee contribution | 10% | 10% | 10% |
Employee Benefit Plans - Share-
Employee Benefit Plans - Share-based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock, Shares | |||
Outstanding at beginning of year | 59,272 | 58,611 | |
Granted | 25,506 | 25,451 | |
Vested | (25,762) | (20,785) | |
Forfeited or cancelled | (820) | (4,005) | |
Outstanding at end of year | 58,196 | 59,272 | 58,611 |
Restricted Stock, Weighted- Average Grant- Date Fair Value | |||
Outstanding at beginning of year | $ 65.85 | $ 61.44 | |
Granted | 80.15 | 69.73 | |
Vested | 64.25 | 60.52 | |
Forfeited or cancelled | 67.02 | 60.50 | |
Outstanding at end of year | $ 72.28 | $ 65.85 | $ 61.44 |
Restricted Stock | |||
Employee Benefit Plans | |||
Compensation expense | $ 2,142,000 | $ 1,662,000 | $ 1,393,000 |
Unrecognized compensation cost | $ 1,993,000,000 | ||
Unrecognized compensation recognition period | 1 year 3 months 29 days | ||
Aggregate grant date fair value | $ 1,655,000 | ||
2020 Equity Plan | |||
Employee Benefit Plans | |||
Number of shares authorized | 700,000 | ||
Aggregate number of shares issued under the plan | 76,373 |
Employee Benefit Plans - Deferr
Employee Benefit Plans - Deferred Compensation Plan (Details) - Deferred Compensation Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plans | |||
Estimated annual cash benefit payment upon retirement | $ 108,011 | $ 108,011 | $ 108,011 |
Service period | 15 years | 15 years | 15 years |
Compensation expense | $ 5,000 | $ 10,000 | $ 15,000 |
Vested present value of future payments | $ 53,000 | $ 156,000 | |
Discount rate | 4.95% | 4.95% |
Stockholders' Equity and Regu_3
Stockholders' Equity and Regulatory Matters (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Stockholders' Equity and Regulatory Matters | ||
Maximum amount of dividends payable without approval | $ 128,790,000 | |
Minimum conservation buffer | 0.0250 | 0.0250 |
Standardized Approach | ||
Total capital (to risk-weighted assets): | ||
Actual, Amount | $ 484,398,000 | $ 387,814,000 |
Actual, Ratio | 0.1399 | 0.1223 |
For Capital Adequacy Purposes, Amount | $ 276,904,000 | $ 253,689,000 |
For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 363,437,000 | $ 332,967,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.1050 | 0.1050 |
Tier 1 capital (to risk-weighted assets): | ||
Actual, Amount | $ 437,979,000 | $ 341,634,000 |
Actual, Ratio | 0.1265 | 0.1077 |
For Capital Adequacy Purposes, Amount | $ 207,678,000 | $ 190,627,000 |
For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 294,211,000 | $ 269,545,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.0850 | 0.0850 |
Common Equity Tier 1 capital (to risk-weighted assets): | ||
Actual, Amount | $ 433,979,000 | $ 341,634,000 |
Actual, Ratio | 0.1254 | 0.1077 |
For Capital Adequacy Purposes, Amount | $ 155,759,000 | $ 142,700,000 |
For Capital Adequacy Purposes, Ratio | 0.0450 | 0.0450 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 242,291,000 | $ 221,978,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.0700 | 0.0700 |
Tier 1 capital (to average assets): | ||
Actual, Amount | $ 437,979,000 | $ 341,634,000 |
Actual, Ratio | 0.1105 | 0.0969 |
For Capital Adequacy Purposes, Amount | $ 158,581,000 | $ 140,992,000 |
For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 158,581,000 | $ 140,992,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.0400 | 0.0400 |
Bank | Standardized Approach | ||
Total capital (to risk-weighted assets): | ||
Actual, Amount | $ 446,634,000 | $ 372,312,000 |
Actual, Ratio | 0.1291 | 0.1175 |
For Capital Adequacy Purposes, Amount | $ 276,726,000 | $ 253,504,000 |
For Capital Adequacy Purposes, Ratio | 0.0800 | 0.0800 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 363,202,000 | $ 332,724,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.1050 | 0.1050 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 345,907,000 | $ 316,880,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.1000 | 0.1000 |
Tier 1 capital (to risk-weighted assets): | ||
Actual, Amount | $ 412,215,000 | $ 349,632,000 |
Actual, Ratio | 0.1192 | 0.1103 |
For Capital Adequacy Purposes, Amount | $ 207,544,000 | $ 190,128,000 |
For Capital Adequacy Purposes, Ratio | 0.0600 | 0.0600 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 294,021,000 | $ 269,348,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.0850 | 0.0850 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 276,726,000 | $ 253,504,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 capital (to risk-weighted assets): | ||
Actual, Amount | $ 412,215,000 | $ 349,632,000 |
Actual, Ratio | 0.1192 | 0.1103 |
For Capital Adequacy Purposes, Amount | $ 155,658,000 | $ 142,596,000 |
For Capital Adequacy Purposes, Ratio | 0.0450 | 0.0450 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 242,135,000 | $ 221,816,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.0700 | 0.0700 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 224,840,000 | $ 205,972,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0650 | 0.0650 |
Tier 1 capital (to average assets): | ||
Actual, Amount | $ 412,215,000 | $ 349,632,000 |
Actual, Ratio | 0.1040 | 0.0993 |
For Capital Adequacy Purposes, Amount | $ 158,585,000 | $ 140,887,000 |
For Capital Adequacy Purposes, Ratio | 0.0400 | 0.0400 |
Minimum Capital Adequacy with Capital Buffer, Amount | $ 158,585,000 | $ 140,887,000 |
Minimum Capital Adequacy with Capital Buffer, Ratio | 0.0400 | 0.0400 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 198,231,000 | $ 176,108,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.0500 | 0.0500 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Information | |
Number of reportable segments | 1 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Interest rate lock commitments | ||
Commitments and contingencies | ||
Notional amount of derivatives | $ 5,854,000 | $ 3,736,000 |
Fixed | ||
Commitments and contingencies | ||
Commitments to extend credit, Notional Amount | 92,113,000 | 120,906,000 |
Variable | ||
Commitments and contingencies | ||
Commitments to extend credit, Notional Amount | 707,285,000 | 539,658,000 |
Credit card arrangements | ||
Commitments and contingencies | ||
Commitments to extend credit, Notional Amount | 21,213,000 | 17,364,000 |
Letters of credit | ||
Commitments and contingencies | ||
Commitments to extend credit, Notional Amount | 9,785,000 | $ 10,343,000 |
Direct pay letters of credit | ||
Commitments and contingencies | ||
Commitments to extend credit, Notional Amount | 0 | |
Standby letters of credit | ||
Commitments and contingencies | ||
Commitments to extend credit, Notional Amount | $ 9,785,000 |
Leases - Operating leases (Deta
Leases - Operating leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases | ||
Right-of-use lease asset | $ 1,583,000 | $ 1,582,000 |
Right-of-use lease asset, Statement of Financial Position | Premises and equipment, net | Premises and equipment, net |
Package of practical expedients | true | |
Practical Expedient, Use of Hindsight | true | |
Practical expedient to not separate lease and non-lease components | true | |
Amortization of ROU Assets - Operating Leases | $ (2,000) | $ (1,000) |
Interest on Lease Liabilities - Operating Leases | 87,000 | 96,000 |
Operating Lease Cost (Cost resulting from lease payments) | $ 85,000 | $ 95,000 |
Weighted Average Lease Term (Years) - Operating Leases | 30 years | 31 years |
Weighted Average Discount Rate - Operating Leases | 5.50% | 5.50% |
Leases - Maturity analysis (Det
Leases - Maturity analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating lease payments due: | ||
Within one year | $ 85 | |
After one but within two years | 86 | |
After two but within three years | 94 | |
After three but within four years | 94 | |
After four years but within five years | 94 | |
After five years | 3,043 | |
Total undiscounted cash flows | 3,496 | |
Discount on cash flows | $ (1,913) | |
Total operating lease liabilities, Balance Sheet Location | Total liabilities | Total liabilities |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair value of assets measured on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | |||
Mortgage servicing rights | $ 13,668 | $ 9,582 | $ 5,016 |
Recurring | |||
Assets | |||
Mortgage servicing rights | 13,668 | 9,582 | |
Recurring | U.S. Treasury securities | |||
Assets | |||
Securities available for sale | 142,097 | ||
Recurring | Obligations of U.S. Government sponsored agencies | |||
Assets | |||
Securities available for sale | 28,294 | 21,749 | |
Recurring | Obligations of states and political subdivisions | |||
Assets | |||
Securities available for sale | 58,246 | 83,186 | |
Recurring | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 36,130 | 36,637 | |
Recurring | Corporate notes | |||
Assets | |||
Securities available for sale | 19,038 | 19,994 | |
Recurring | Certificates of deposit | |||
Assets | |||
Securities available for sale | 489 | 974 | |
Recurring | Level 2 | |||
Assets | |||
Mortgage servicing rights | 13,668 | 9,582 | |
Recurring | Level 2 | U.S. Treasury securities | |||
Assets | |||
Securities available for sale | 142,097 | ||
Recurring | Level 2 | Obligations of U.S. Government sponsored agencies | |||
Assets | |||
Securities available for sale | 28,294 | 21,749 | |
Recurring | Level 2 | Obligations of states and political subdivisions | |||
Assets | |||
Securities available for sale | 58,246 | 83,186 | |
Recurring | Level 2 | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 36,130 | 36,637 | |
Recurring | Level 2 | Corporate notes | |||
Assets | |||
Securities available for sale | 19,038 | 19,994 | |
Recurring | Level 2 | Certificates of deposit | |||
Assets | |||
Securities available for sale | 489 | 974 | |
Recurring | Level 3 | |||
Assets | |||
Assets at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair value of assets measured on a non-recurring basis (Details) - Non-recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets Measured at Fair Value | ||
OREO | $ 2,573 | $ 2,520 |
Loans individually evaluated, net of reserve | 9,242 | 3,478 |
Total Assets Measured at Fair Value | 11,815 | 5,998 |
Level 3 | ||
Assets Measured at Fair Value | ||
OREO | 2,573 | 2,520 |
Loans individually evaluated, net of reserve | 9,242 | 3,478 |
Total Assets Measured at Fair Value | $ 11,815 | $ 5,998 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Fair value measurement on inputs and valuation techniques (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Third party appraisals, sales contracts or brokered price options | Collateral discounts and estimated costs to sell | ||
Fair Value of Financial Instruments | ||
Other real estate owned | 0 | |
Third party appraisals, sales contracts or brokered price options | Collateral discounts and estimated costs to sell | Minimum | ||
Fair Value of Financial Instruments | ||
Other real estate owned | 0.03 | |
Third party appraisals, sales contracts or brokered price options | Collateral discounts and estimated costs to sell | Weighted Average | ||
Fair Value of Financial Instruments | ||
Other real estate owned | 0 | |
Loans individually evaluated, net of reserve | 0.38 | |
Third party appraisals and discounted cash flows | Collateral discounts and discount rates | Minimum | ||
Fair Value of Financial Instruments | ||
Loans individually evaluated, net of reserve | 0 | |
Impaired Loans, net of impairment reserve | 0 | |
Third party appraisals and discounted cash flows | Collateral discounts and discount rates | Maximum | ||
Fair Value of Financial Instruments | ||
Other real estate owned | 0.71 | |
Loans individually evaluated, net of reserve | 0.53 | |
Impaired Loans, net of impairment reserve | 0.71 | |
Third party appraisals and discounted cash flows | Collateral discounts and discount rates | Weighted Average | ||
Fair Value of Financial Instruments | ||
Impaired Loans, net of impairment reserve | 0.31 | 0.26 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying value and estimated fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | |||
Securities held to maturity, fair value | $ 103,626 | $ 43,770 | |
Mortgage servicing rights | 13,668 | 9,582 | $ 5,016 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 247,468 | 119,351 | |
Securities held to maturity, fair value | 103,324 | 45,097 | |
Loans held for sale | 3,012 | 648 | |
Loans, net | 3,299,365 | 2,871,298 | |
Other investments | 21,366 | 16,495 | |
Mortgage servicing rights | 13,668 | 9,582 | |
Financial liabilities: | |||
Deposits | 3,432,920 | 3,060,229 | |
Securities sold under repurchase agreements | 75,747 | 97,196 | |
Notes payable | 35,270 | 1,929 | |
Subordinated notes | 12,000 | 23,500 | |
Junior subordinated debentures | 4,124 | ||
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 247,468 | 119,351 | |
Securities held to maturity, fair value | 103,626 | 43,770 | |
Loans held for sale | 3,012 | 648 | |
Loans, net | 3,168,749 | 2,832,454 | |
Other investments | 21,366 | 16,495 | |
Mortgage servicing rights | 13,668 | 9,582 | |
Financial liabilities: | |||
Deposits | 3,153,512 | 2,732,007 | |
Securities sold under repurchase agreements | 75,747 | 97,196 | |
Notes payable | 35,270 | 1,929 | |
Subordinated notes | 12,000 | 23,500 | |
Junior subordinated debentures | 4,124 | ||
Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 247,468 | 119,351 | |
Securities held to maturity, fair value | 99,475 | 38,577 | |
Estimated Fair Value | Level 2 | |||
Financial assets: | |||
Securities held to maturity, fair value | 4,151 | 5,193 | |
Mortgage servicing rights | 13,668 | 9,582 | |
Financial liabilities: | |||
Securities sold under repurchase agreements | 75,747 | 97,196 | |
Notes payable | 35,270 | 1,929 | |
Subordinated notes | 12,000 | 23,500 | |
Junior subordinated debentures | 4,124 | ||
Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Loans held for sale | 3,012 | 648 | |
Loans, net | 3,168,749 | 2,832,454 | |
Other investments | 21,366 | 16,495 | |
Financial liabilities: | |||
Deposits | $ 3,153,512 | $ 2,732,007 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Cash and cash equivalents | $ 247,468 | $ 119,351 | ||
Securities | 103,324 | 45,097 | ||
Other assets | 22,658 | 17,091 | ||
TOTAL ASSETS | 4,221,842 | 3,660,432 | ||
Liabilities | ||||
Subordinated notes | 12,000 | 23,500 | ||
Junior subordinated notes | 4,124 | |||
Other liabilities | 41,983 | 24,475 | ||
Total liabilities | 3,602,044 | 3,207,329 | ||
Stockholders' equity: | ||||
Common stock | 115 | 101 | ||
Additional paid-in capital | 333,815 | 218,263 | ||
Retained earnings | 348,001 | 295,496 | ||
Treasury stock, at cost | (53,387) | (45,191) | ||
Accumulated other comprehensive income (loss) | (8,746) | (15,566) | ||
Total stockholders' equity | 619,798 | 453,103 | $ 322,653 | $ 294,857 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,221,842 | 3,660,432 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 37,360 | 14,760 | ||
Securities | 1,935 | 1,851 | ||
Investment in Bank | 598,033 | 461,101 | ||
Investment in Veritas (Dissolved during 2023) | 39 | |||
Other assets | 272 | 462 | ||
TOTAL ASSETS | 637,600 | 478,213 | ||
Liabilities | ||||
Subordinated notes | 12,000 | 23,500 | ||
Junior subordinated notes | 4,124 | |||
Other liabilities | 1,678 | 1,610 | ||
Total liabilities | 17,802 | 25,110 | ||
Stockholders' equity: | ||||
Common stock | 115 | 101 | ||
Additional paid-in capital | 333,815 | 218,263 | ||
Retained earnings | 348,001 | 295,496 | ||
Treasury stock, at cost | (53,387) | (45,191) | ||
Accumulated other comprehensive income (loss) | (8,746) | (15,566) | ||
Total stockholders' equity | 619,798 | 453,103 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 637,600 | $ 478,213 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income: | |||
Total interest income | $ 182,483 | $ 116,534 | $ 98,386 |
Other expenses | 9,021 | 6,348 | 6,541 |
Benefit for income taxes | 24,280 | 14,419 | 14,523 |
Net Income (Loss) | 74,514 | 45,214 | 45,444 |
Parent Company | |||
Income: | |||
Dividends received from Bank | 68,573 | 22,281 | 22,361 |
Equity in undistributed earnings of subsidiaries | 10,271 | 25,258 | 24,687 |
Other income | 9 | ||
Total interest income | 78,844 | 47,548 | 47,048 |
Other expenses | 5,951 | 3,204 | 2,205 |
Benefit for income taxes | (1,621) | (870) | (601) |
Net Income (Loss) | $ 74,514 | $ 45,214 | $ 45,444 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flow from operating activities: | |||
Net income | $ 74,514 | $ 45,214 | $ 45,444 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Stock compensation | 2,142 | 1,662 | 1,393 |
Changes in other assets and liabilities: | |||
Other assets | (2,006) | 2,877 | 1,862 |
Other liabilities | 15,920 | (2,407) | (5,013) |
Net cash provided by (used in) operating activities | 52,945 | 40,008 | 40,283 |
Cash flows from investing activities, net of effects of business combination: | |||
Proceeds from other investments | 248 | ||
Net cash provided by investing activities | 268,996 | (177,806) | (93,886) |
Cash flows from financing activities, net of effects of business combination: | |||
Repayment of junior subordinated debentures | (8,248) | ||
Proceeds from subordinated notes | 6,000 | ||
Issuance of common stock | 195 | 114 | 114 |
Repurchase of common stock | (10,046) | (14,314) | (8,272) |
Net cash (used in) provided by financing activities | (193,824) | (39,711) | 180,244 |
Net increase (decrease) in cash and cash equivalents | 128,117 | (177,509) | 126,641 |
Cash and cash equivalents at beginning of year | 119,351 | 296,860 | 170,219 |
Cash and cash equivalents at end of year | 247,468 | 119,351 | 296,860 |
Parent Company | |||
Cash flow from operating activities: | |||
Net income | 74,514 | 45,214 | 45,444 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Stock compensation | 2,142 | 1,662 | 1,393 |
Equity in earnings of subsidiaries (includes dividends) | (78,844) | (47,539) | (47,048) |
Changes in other assets and liabilities: | |||
Other assets | 403 | (772) | 1 |
Other liabilities | (623) | (2,054) | (660) |
Net cash provided by (used in) operating activities | (2,408) | (3,489) | (870) |
Cash flows from investing activities, net of effects of business combination: | |||
Dividends received from Bank | 69,982 | 22,355 | 22,360 |
Dividends received from Veritas | 37 | ||
Net cash used in business combination | (4,554) | 5,159 | |
Proceeds from other investments | 248 | ||
Net cash provided by investing activities | 65,713 | 27,514 | 22,360 |
Cash flows from financing activities, net of effects of business combination: | |||
Repayment of junior subordinated debentures | (8,248) | ||
Repayment of subordinate notes | (11,500) | ||
Proceeds from subordinated notes | 6,000 | ||
Cash dividends paid | (11,106) | (7,248) | (8,733) |
Issuance of common stock | 195 | 114 | 114 |
Repurchase of common stock | (10,046) | (14,314) | (8,272) |
Net cash (used in) provided by financing activities | (40,705) | (15,448) | (16,891) |
Net increase (decrease) in cash and cash equivalents | 22,600 | 8,577 | 4,599 |
Cash and cash equivalents at beginning of year | 14,760 | 6,183 | 1,584 |
Cash and cash equivalents at end of year | $ 37,360 | $ 14,760 | $ 6,183 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net income available to common shareholders | $ 74,514 | $ 45,214 | $ 45,444 |
Less: Earnings allocated to participating securities | (425) | (330) | (351) |
Net income available to common shareholders | $ 74,089 | $ 44,884 | $ 45,093 |
Weighted average common shares outstanding including participating securities | 10,231,569 | 8,104,117 | 7,680,896 |
Less: Participating securities | (58,359) | (59,211) | (59,264) |
Average shares outstanding, basic | 10,173,210 | 8,044,906 | 7,621,632 |
Basic earnings per common shares | $ 7.28 | $ 5.58 | $ 5.92 |
Diluted | |||
Net income available to common shareholders | $ 74,514 | $ 45,214 | $ 45,444 |
Weighted average common shares outstanding for basic earnings per common share | 10,173,210 | 8,044,906 | 7,621,632 |
Add: Dilutive effects of stock based compensation awards | 25,783 | 24,354 | 21,535 |
Average shares and dilutive potential common shares | 10,198,993 | 8,069,260 | 7,643,167 |
Diluted earnings per common share | $ 7.28 | $ 5.58 | $ 5.92 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 74,514 | $ 45,214 | $ 45,444 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Arrangements The following table describes, for the quarter ended December 31, 2023, each trading arrangement for the sale or purchase of our securities adopted, terminated or for which the amount, pricing or timing provisions were modified by our directors and officers (as defined in Rule 16a-1(f) of the Exchange Act) that is either (1) a contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) (a “Rule 10b5-1 trading arrangement”) or (2) a “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(c) of Regulation S-K): Name (Title) Action Taken (Date) Type Nature Duration Aggregate Number of Shares to be Purchased or Sold Stephen E. Johnson (director) Adoption (Oct. 24, 2023) Non-Rule 10b5-1 Sales Oct. 24, 2023 2,000 shares of common stock |
Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Stephen E. Johnson | |
Trading Arrangements, by Individual | |
Name | Stephen E. Johnson |
Title | director |
Non-Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | Oct. 24, 2023 |
Aggregate Available | 2,000 |
Duration | Oct. 24, 2023 |